When demand is unit elastic, a 10 percent change in the price of the good
A) will cause a change in quantity demanded of less than 10 percent.
B) will cause a change in quantity demanded equal to 10 percent.
C) will cause a change in quantity demanded greater than 10 percent.
D) will not cause any change in quantity demanded.
B
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The demand curve for pizza in Foodieland is vertical. If a tax is imposed on each pizza bought, ________
A) the burden of the tax will fall entirely on the buyers B) the burden of the tax will fall entirely on the sellers C) the tax incidence on the sellers will be higher than that on the buyers D) the deadweight loss due to taxation will be large
The M2 money multiplier is
A) negatively related to high-powered money. B) positively related to the time deposit ratio. C) positively related to the required reserve ratio. D) positively related to the excess reserves ratio.