Assuming we are considering a normal good, the calculated price elasticity of demand is:
A) always positive.
B) always negative.
C) positive if demand is elastic and negative if demand is inelastic.
D) positive if demand is inelastic and negative if demand is elastic.
B
Economics
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Suppose an economy's entire output is cars. In Year 1, all manufacturers produce cars at $15,000 each; the real GDP is $300,000. In Year 2, 20 cars are produced at $16,000 each. What is the real GDP in Year 2?
(A) $280,000 (B) $20,000 (C) $320,000 (D) $300,000
Economics
Which of the following would a person who believed in the doctrine of laissez faire disapprove of?
(A) The invisible hand of the marketplace. (B) Government funding of education. (C) Self-interest as the motivating force in the free market. (D) Consumer sovereignty.
Economics