Jeff runs a bakery that is famous for its handmade sweet buns. Suppose the elasticity of demand for sweet buns is equal to 0.21, then an increase in the price of the buns:
a. will result in a decrease in the supply of sweet buns.
b. will result in an increase in the demand for sweet buns

Using the expenditure approach, total spending by households for durable goods, nondurable goods, and services is a category called:

a. gross private domestic investment. b. capital consumption allowance. c. personal consumption expenditures. d. household investment.

If the demand for agricultural output is highly inelastic, an improvement in the technology used in the agricultural industry most likely will cause a:

A. large drop in the price of agricultural output combined with a large decrease in quantity. B. large drop in the price of agricultural output combined with a small increase in quantity. C. small drop in the price of agricultural output combined with a large increase in quantity. D. small drop in the price of agricultural output combined with a small increase in quantity.