In the above figure, point B represents

A) a recessionary gap.
B) a full-employment equilibrium.
C) an inflationary gap.
D) a decrease in aggregate demand.

B

Economics

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If gasoline prices rise by 20% and quantity demanded falls by 5%, then the price elasticity of demand for gasoline is:

A) inelastic. B) elastic. C) unit elastic. D) perfectly inelastic.

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A price ceiling imposed on a good that is below the equilibrium price will result in a shortage of that good

a. True b. False Indicate whether the statement is true or false

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