What will happen to the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4.5 percent and the annual rate of population growth goes from 3 percent to 3.5 percent?
A) The annual rate of growth of per capita real GDP will increase from 7.5 percent to 8 percent.
B) The annual rate of growth of per capita real GDP will increase from -1.5 percent to -1 percent.
C) The annual rate of growth of per capita real GDP will remain unchanged.
D) The annual rate of growth of per capita real GDP will decrease from 1.5 percent to 1 percent.
D
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A car dealer wants to get rid of the stock of last year's model. Assume that the dealer knows from past experience that the price elasticity of demand for cars is unitary (= 1)
If the price of the cars is currently $20,000 and the dealer wants to increase the quantity demanded from 30 units to 50 units, what must the new price be if the dealer is to sell the 20 additional cars? A) $10,000 B) $12,000 C) $16,000 D) $18,000
The market demand curve for a particular good
A) is the horizontal sum of all individual demand curves for the good. B) may be less than an individual demand curve for the good. C) may or may not show a direct relationship between price and quantity demanded. D) will not be affected by any of the determinants of individual demand.