If the bus fare of a city increases from $1.00 to $1.10 per ride and as a result total revenue increases, then we know that
A) percentage change in fare is less than percentage change in number of rides.
B) percentage change in fare is greater than percentage change in number of rides.
C) percentage change in fare is equal to the percentage change in number of rides.
D) it is impossible to tell.
Answer: B
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A change in which of the following variables does not cause a change in demand?
a. prices of unrelated goods b. incomes of demanders c. the number of demanders d. tastes of demanders
The size of the effect of a given deposit of cash into a demand deposit account on the money supply is greater:
a. the greater the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves. b. the greater the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves. c. the smaller the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves. d. the smaller the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.