When the price of milk is $3 per bottle, Steve purchases 20 bottles of milk. When the price increases to $6, Steve's consumption falls to 15 bottles. Steve's arc elasticity of demand for milk is:

If traveler's checks were $1000 higher and saving deposits were $500 higher, M1 would be

a. $500 higher and M2 would be $1,500 higher. b. $1,000 higher and M2 would be $1,500 higher. c. M2 and M1 would be $1,500 higher. d. $1,000 high and M2 would be $500 higher.

If Argentina has an absolute advantage in the production of beef and Guatemala has an absolute advantage in the production of bananas, then

A. it is reasonable to expect that trade will benefit both countries, but specialization will not. B. neither country has anything to gain from specialization and trade. C. it is reasonable to expect that specialization and trade will benefit both countries. D. it is reasonable to expect that specialization will benefit both countries, but trade will not.