Suppose that the quantity of staplers demanded falls from 10,000 per week to 8500 . Use the midpoint formula to calculate the percentage change in quantity demanded
What will be an ideal response?
% change in quantity demanded = [8,500 -10,000]/[(8,500 + 10,000)/2] = [-1500]/[(18,500/2]= [-1500]/[9,250] = -16.2
Economics
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Budget surpluses exist when: a. government spending exceeds its tax revenues
b. government tax revenues exceed its spending. c. government spending equals its tax revenues. d. expansionary fiscal policies increase real GDP and the price level.
Economics
The crowding-out effect works through interest rates and it tends to:
A. Increase the effectiveness of a tax increase B. Decrease the effectiveness of a tax increase C. Decrease the effectiveness of an increase in government spending D. Increase the effectiveness of an increase in government spending
Economics