One way to solve the problems caused by information asymmetry is:

Suppose that an economy is initially producing at the full-employment level of output. Now suppose there is a reduction in the money supply. Other things being equal we can expect

A) demand-side inflation. B) supply-side inflation. C) deflation. D) cost-pull inflation.

Which economic concept is defined as the measure of how responsive consumers are to price change?

a. consumer expectation b. consumer taste c. decreasing marginal utility d. elasticity of demand