If the price elasticity of demand for a product is equal to 0.5, then a 10 percent decrease in price will:
A. increase quantity demanded by 0.5 percent.
B. decrease quantity demanded by 5 percent.
C. decrease quantity demanded by 0.5 percent.
D. increase quantity demanded by 5 percent.
Answer: D
Economics
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The level of real GDP and the price level that equate the aggregate quantity demanded and the aggregate quantity supplied is known as macroequilibrium
Indicate whether the statement is true or false
Economics
If economists say that a 7 percent growth in the money supply will increase aggregate demand by 7 percent, they are assuming that velocity
a. will decrease. b. is constant. c. will increase. d. is unpredictable.
Economics