The price elasticity of demand for an agricultural product is 0.4. This value means that, when the quantity decreases 1 percent, the price
A) falls 4 percent.
B) rises 4 percent.
C) falls 2.5 percent.
D) rises 2.5 percent.
E) rises 0.25 percent.
D
Economics
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When regulators chose to allow insolvent S&Ls to continue to operate rather than to close them, they were pursuing a policy of
A) regulatory forbearance. B) regulatory kindness. C) ostrich reasoning. D) ignorance reasoning.
Economics
Suppose the supply of textbooks is upward sloping and shifts leftward due to higher ink and paper costs. Which of the following events would leave the equilibrium price of textbooks at the same level observed before the supply shift?
A) Demand is perfectly elastic (horizontal). B) Demand is downward sloping and shifts leftward. C) all of the above D) none of the above
Economics