The Diagrams Below Show the Import,export,and Net Export Functions for an Economy

question 7

Multiple Choice

The diagrams below show the import,export,and net export functions for an economy. FIGURE 22-1 Refer to Figure 22-1.The function for desired imports for this economy can be expressed as

• A)NX = 450 - Y.
• B)IM = 450 - 0.5(
• Y).
• C)NX = 0.5(
• Y).
• D)IM = 0.5(
• Y).
• E)IM = 0.2(

---

Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unaffected by changes in price.

Midpoint Method

A technique used to calculate the elasticity of demand or supply, offering a more accurate measure by averaging the beginning and end prices and quantities.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of demand to price changes.

Most Elastic

Refers to the responsiveness of demand or supply to changes in price or income, with "most elastic" indicating the greatest sensitivity.