If the Price Elasticity of Demand for Apples Is Higher

question 90

True/False

If the price elasticity of demand for apples is higher than the price elasticity of demand for oranges, then a given percentage increase in the price of apples and oranges will result in more percentage decrease in the quantity demanded for apples than for oranges.

---

Definitions:

Net Capital Outflows

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners; indicating the amount of money leaving a country to invest abroad minus the amount coming in.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a negative balance of trade.

Foreign Assets

Assets such as stocks, bonds, real estate, or businesses that are located in countries outside the investor's home country.

Foreign Price Level

A measure of the average prices of goods and services in a country relative to those in other countries, affecting exchange rates and purchasing power.