If M = 2,000, P = 2

question 68

Multiple Choice

If M = 2,000, P = 2.25, and Y= 6,000, what is velocity?

• A)6.75.
• B)3.00.
• C)1.33.
• D)1.50.

---

Definitions:

Price Elastic

Refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Demand Schedules

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period.

Price Elasticity

The degree to which consumer demand for a product reacts to shifts in its price, showcasing the level of consumer sensitivity to pricing alterations.

Long Run

A period in which all inputs, including physical capital and labor, can be fully adjusted, allowing for analysis of equilibrium and efficiency without the constraints of fixed factors.