Assume that when the price of good X is $12, quantity demanded is 32. When price is decreased to $9, quantity demanded increases to 45. Over this range, the arc elasticity of demand is 1.182

In a market system, the ultimate decision about what to produce is left to

A) buyers. B) the government. C) sellers. D) households.

Which of the following will most likely cause an increase (shift to the right) in both the long-run and short-run aggregate supply curves?

a. an increase in the national debt b. an increase in income tax rates c. a decrease in the economy's rate of investment and capital formation d. a technological improvement in robotics that substantially increases labor productivity