Using the Rule of 70,about How Much Would $100 Be

question 158

Multiple Choice

Using the rule of 70,about how much would $100 be worth after 50 years if the interest rate were 7 percent?

• A)$400
• B)$800
• C)$1,600
• D)$3,200

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Definitions:

Unit-Elastic

A situation in which a product's price elasticity of demand is exactly one, indicating that the change in quantity demanded is directly proportional to the change in price.

Elastic Inelastic

Elastic demand refers to a significant change in quantity demanded when the price changes, while inelastic demand indicates little to no change in quantity demanded despite price changes.

Cross-Price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, indicating whether the goods are substitutes or complements.

Quantity Demanded

The complete quantity of a product or service that purchasers are ready and financially able to buy at a specific price during a designated time frame.