Income inequality increases as the Gini coefficient approaches 1

Demand is price elastic if a

A) relatively large price increase leads to a relatively small decrease in the quantity demanded. B) relatively small price increase leads to a relatively large decrease in the quantity demanded. C) price increase leads to a decrease in the quantity demanded. D) price increase leads to an increase in the quantity demanded.

The economy will grow from points B to G in Figure 10-3 above over time because

A) per person saving and steady state investment will remain stable at points C and D respectively. B) per person capital will grow, point D to E since per capita savings exceed steady state investment, point C is greater than point D. C) per person capital will grow, point D to E since per capita savings is less than steady state investment, point C is greater than point D. D) per person saving and steady state investment will remain stable at points D and C respectively.