A large government debt can reduce the amount of ________ in an economy and reduce future income and real wages for citizens

You observed last week that the price of tomatillos was $4 per pound and that the total quantity of tomatillos consumed in Ames was 50 pounds. This week, you observe that the price of tomatillos increased to $6 per pound and the consumption decreased to 30 pounds. Based on your observations, calculate the elasticity of demand for tomatillos.

A. -2 B. -1.6 C. -0.8 D. -0.5

If there is a shortage in the market for athletic shoes,

a. the price should rise to eliminate the shortage b. inventories of athletic shoes will grow c. demand will decrease to restore equilibrium d. firms will reduce production to restore equilibrium e. supply will increase to restore equilibrium