If the Price Elasticity of Demand for a Good Is

question 229

Multiple Choice

If the price elasticity of demand for a good is 0.4,then which of the following events is consistent with a 2 percent decrease in the quantity of the good demanded?

• A)a 0.8 percent increase in the price of the good
• B)a 2.4 percent increase in the price of the good
• C)a 5 percent increase in the price of the good
• D)a 8 percent increase in the price of the good

Understand the significance of government purchases and their contribution to GDP.

Comprehend the role of Social Security payments and education spending in GDP.

Calculate personal income and disposable personal income from given data.

Understand the calculation and significance of net exports, real GDP, and the GDP deflator.

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Definitions:

Profit-Making

The primary goal of most businesses and enterprises, which involves generating revenue in excess of its expenses to gain financial profit.

William Henry Harrison

The ninth President of the United States, whose term in 1841 was famously brief, lasting just one month before he died of pneumonia.

American System

An economic plan that emphasized high tariffs, a national bank, and federal subsidies for roads, canals, and other infrastructure projects to foster national growth and unity in the early 19th century.

Panic of 1837

A financial crisis in the United States triggered by a speculative fever, leading to bank failures, bankruptcies, and a five-year depression.