If a One Percent Increase in the Population Leads to a Five

question 14

Multiple Choice

If a one percent increase in the population leads to a five percent increase in the quantity sold,an economist would claim

• A) the good is elastic with respect to population.
• B) the good is inelastic with respect to population.
• C) the good is a fad.
• D) consumers are misinformed about the quality of the product.

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Definitions:

Misery Index

An economic indicator created by summing the unemployment rate and the inflation rate, intended to measure the health of an economy.

Current

Relevant to the present time or most recent; also, a flow of electricity or the flow of water in a river or sea.

Misery Index

An economic indicator created by adding the unemployment rate to the inflation rate, intended to measure economic discomfort.

Year

A period of time equal to 365 days, or 366 in leap years, used for calculating time in calendar terms.