A crawling peg is an exchange rate arrangement in which the rate is adjusted in small amounts at fixed, preannounced rates

Refer to Figure 4-1. If the market price is $3.50, what is Kendra's consumer surplus?

A) $9.00 B) $7.50 C) $3.50 D) $0

If the quantity demanded for a good rises as income rises then the income elasticity of demand for this good is ________ than 0, and the good is ________ good

A) less; an inferior B) less; a normal C) greater; a normal D) greater; an inferior