Suppose that the elasticity of demand for a product is 0.5 and price decreases by 20%. By what percentage will quantity demanded increase?

Suppose for an economy, investment = $40; saving = $50, government spending + exports = 100; and taxes + imports = $110 . Then for this economy, total leakages exceed total injections by $20, so there will be pressure for the economy to contract

a. True b. False Indicate whether the statement is true or false

Which of the following can lead to an oligopoly?

a. Product differentiation b. Existence of too many sellers c. Some form of barrier to entry d. Availability of close substitutes