The Demand Curves for Gold in New York and Zurich

question 170

Multiple Choice

The demand curves for gold in New York and Zurich can both be represented by a line with negative slope, -b. When the price is zero the demand for gold is x ounces higher in New York than in Zurich. At the current price of gold the price elasticity of demand for gold in New York and Zurich is -3 and -4 respectively. The value of x equals

• A) a quarter of the current demand for gold in New York
• B) a third of the current demand for gold in New York
• C) a half of the current demand for gold in New York
• D) three-quarters of the current demand for gold in New York
• E) none of the above

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Definitions:

Nucleus

The central and most important part of an object, movement, or group, forming the basis for its activity and growth; in cells, it is the organelle that houses the cell's DNA.

Aldosterone

A steroid hormone produced by the adrenal glands that helps regulate the balance of salt and water in the body.

Sodium

A chemical element with the symbol Na, essential for human health but requiring regulation in the body due to its role in fluid balance and blood pressure.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, often measured as an indicator of cardiovascular health.