The present value of receiving M dollars two years from now when the prevailing interest rate is i is equal to

If the price elasticity of demand for a good is 2.0, then a 10 percent increase in price results in a

a. 0.2 percent decrease in the quantity demanded. b. 5 percent decrease in the quantity demanded. c. 20 percent decrease in the quantity demanded. d. 40 percent decrease in the quantity demanded.

Suppose that M doubles and PQ remains the same. In that case we know that V

A. fell by 100%. B. fell by 50%. C. stayed the same. D. rose by 50%.