In the above table, the efficient quantity of brownies is produced when the price of a brownie is equal to

According to historical data, what is the effect of a sharp change in the current account on the exchange rate (both in the short and long run)?

A) At first, home currency will depreciate as CA balance falls, but over time, currency will begin to depreciate. B) At first, home currency will appreciate as CA balance falls, but over time, currency will begin to depreciate. C) At first, home currency will appreciate as CA balance rises, but over time, currency will begin to depreciate. D) At first, home currency will depreciate as CA balance falls, but over time, currency will begin to appreciate. E) At first, home currency will appreciate as CA balance falls, but over time, currency will begin to appreciate.

Airlines charge a ____________price to business travelers compared to leisure travelers because business travelers have a ____________ demand than leisure travelers

a. Higher; more elastic b. Higher; less elastic c. Lower; more elastic d. Lower; less elastic