Suppose that a 15 percent decrease in price leads to an increase in the quantity demanded of 10 percent,
A. demand is elastic.
B. demand is inelastic.
C. elasticity of demand is unitary.
D. None of the above is correct.
Answer: B
Economics
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An increase in labor supply would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) shift up and to the right only if people face borrowing constraints.
Economics
Suppose there is currently a surplus of wheat on the world market. The problem of excess supply may be removed from the market by:
A) lowering the market price. B) shifting the supply curve leftward. C) shifting the demand curve leftward. D) Both A and B are plausible actions.
Economics