How is future price related to current demand?
a. If the price is expected to rise, current demand will drop.
b. If the price is expected to fall, current demand will rise.
c. If the price is expected to rise, current demand will rise.
d. Future price is not related to current demand.
Ans: c. If the price is expected to rise, current demand will rise.
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The price of a good rises by 12 percent and the price elasticity of demand for the good is 0.85. Which of the following is a CORRECT interpretation of these facts?
A) When the price rises by 12 percent, the quantity demanded decreased by 0.85 percent. B) For each 1 percent that the price rose, the quantity demanded decreased by 10.2 percent. C) For each 0.85 percent that the price rose, the quantity demanded decreased by 1 percent. D) For each 1 percent that the price rose, the quantity demanded decreased by 0.85 percent.
The marginal productivity theory of income distribution was developed by
A) William Stanley Jevons. B) George Akerlof. C) John Bates Clark. D) Edward Lazear.