When MrWilson Worked Full Time,he Paid a Cleaning Service to Have

question 134

Multiple Choice

When Mr.Wilson worked full time,he paid a cleaning service to have his house cleaned twice a month.Now that he is retired,Mr.Wilson does his own cleaning.What is the effect on GDP?

• A) GDP is unaffected by this change.
• B) GDP falls as a result of this change.
• C) GDP at first rises but then falls.
• D) GDP rises as a result of this change.

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Definitions:

Price Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good.

Price Elasticity of Demand

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

Pokemon Cards

Collectible cards part of the Pokémon Trading Card Game, featuring different characters from the Pokémon franchise, with gameplay based on battles between Pokémon creatures.

Cross-price Elasticity

A measure of how the demand for one good changes in response to a change in the price of another good.