Since it is always a negative number, economists use the convention of taking the absolute value of:
A. the elasticity of total revenue.
B. the price elasticity of surpluses.
C. the price elasticity of shortages.
D. price elasticity of demand.
Answer: D
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Agriculture is the primary occupation in Agraria and agricultural products account for two-thirds of Agraria's gross domestic product
How will a sharp fall in the price of agricultural products affect Agraria's economy if the demand for such products is price-inelastic?
If interest rates in Canada rise above those in the rest of the world, then
a. the demand for Canadian dollars decreases b. exports from Canada to other countries increases c. imports into Canada from other countries decreases d. it raises Canada's exchange rate and this may result in a deficit on Canada's current account e. the balance of payments becomes negative