On most days the price of a rose is $1 and 80 roses are purchased. On Valentine's Day the demand increases so that the price of a rose rises to $2 and 320 roses are purchased. Therefore, the price elasticity of
A) demand for roses is about 1.8.
B) demand for roses is about 0.55.
C) supply of roses is about 1.8.
D) supply of roses is about 0.55.
C
Economics
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Increased liquidity in recent decades has reduced interest rates on which of the following assets (holding constant all other things that affect interest rates)?
A) U.S. government bonds B) bonds issued by large corporations C) business loans D) bonds issued by state governments
Economics
As an household's wealth increases, it will experience a(n):
a. increase in its MPC. b. decrease in autonomous consumption. c. decrease in its MPS. d. increase in autonomous consumption. e. increase in autonomous saving.
Economics