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Social Science Clinic => Economics => Macroeconomics => Topic started by: NguyenJ on Jun 30, 2018

Title: If the elasticity of demand for bagels is equal to 1, moving along the demand curve for bagels, an ...
Post by: NguyenJ on Jun 30, 2018

If the elasticity of demand for bagels is equal to 1, moving along the demand curve for bagels, an increase in price will:
 a. not affect the quantity purchased.
 b. decrease the quantity demanded and increase total revenue.
 c. decrease the quantity demanded and decrease total revenue.
 d. decrease the quantity demanded and leave total revenue unchanged.

Question 2

The ________ interest is the relevant interest rate in the money market; the __________ interest rate is the relevant interest rate in the loanable funds market.
 a. Nominal; nominal.
  b. Nominal; real
 c. Real; nominal
 d. Real; real

Title: If the elasticity of demand for bagels is equal to 1, moving along the demand curve for bagels, an ...
Post by: Viet Thy on Jun 30, 2018

Answer to Question 1

d

Answer to Question 2

b