The Table Below Shows the Quantities of Automobiles, Margarine, and Coffee

question 61

Multiple Choice

The table below shows the quantities of automobiles, margarine, and coffee purchased by Ted at different levels of income.Table 6.2

-Suppose the price of a product is reduced from $10 to $6 and the quantity demanded increases from 40 to 60 units. From this we can conclude that the price elasticity of demand over this price range is equal to _____.

• A)1.2
• B)1.25
• C)0.80
• D)0.20
• E)0.5

Evaluate the potential gains from free versus restricted trade.

Discern the economic rationale behind trade restrictions for national security or protection of infant industries.

Assess the impact of trade on job markets within the context of comparative advantages.

Interpret public opinions and economist views on the advantages and disadvantages of free trade.