If the elasticity of demand for mothballs is 0.50, then moving along the demand for mothballs:
a. A 20% rise in the price of mothballs will lead to a 10% fall in the quantity of mothballs demanded.
b. A 10% rise in the price of mothballs will lead to a 20% fall in the quantity of mothballs demanded.
c. A 20% rise in the price of mothballs will lead to a 10% rise in the quantity of mothballs demanded.
d. A 10% rise in the price of mothballs will lead to a 20% rise in the quantity of mothballs demanded.
a
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Suppose you put $500 into a bank account today. Interest is paid annually and the annual interest rate is 5.5 percent. The future value of the $500 is
a. $637.50 after 5 years and $822.09 after 10 years. b. $637.50 after 5 years and $775.00 after 10 years. c. $653.48 after 5 years and $854.07 after 10 years. d. $688.36 after 5 years and $915.56 after 10 years.
Suppose that inventory investment is $20 billion and (total) investment is $680 billion. What does purchases of newly produced capital goods equal?
A) $715 billion B) $785 billion C) $750 billion D) $35 billion E) There is not enough information to answer this question.