The term "public sector" refers only to federal government purchases of goods and services

When shortages or surpluses persist for any extended period of time, they

A) are a consequence of failure to allow prices to perform their rationing function. B) are evidence of an underlying imbalance between demand and supply. C) are evidence of goods being scarce. D) indicate that there is no price that will clear the market in the case of some goods.

When a product's price increases from $800 to $1,200, the quantity demanded decreases from 11,000 to 9,000 . Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to: a. 0.5

b. 2.0. c. 0.25. d. 4.0.