Making choices that are expected to achieve the highest possible value for some objective is termed:

Which of the following most accurately describes what occurs during a time of inflation?

A) People must work longer to live as well. B) Prices rise faster than incomes. C) The average standard of living declines. D) The cost of living increases. E) The purchasing power of money falls.

Suppose a hurricane decreased the supply of oranges so that the price of oranges rose from $120 a ton to $180 a ton and quantity sold decreased from 800 tons to 240 tons. What is the absolute value of the price elasticity of demand?

A) 0.11 B) 0.37 C) 2.69 D) 9.33