Suppose that the quantity of root beer demanded declines from ...

[sarasara]

Suppose that the quantity of root beer demanded declines from 103,000 gallons per week to 97,000 gallons per week as a consequence of a 10 percent increase in the price of root beer. The price elasticity of demand is
 
  A) 0.60.
  B) 1.40.
  C) 1.66.
  D) 6.00.

Question 2

In the above figure, the initial supply of loanable funds curve is SLF0 and the demand for loanable funds investment curve is DLF0. An increase in the real interest rate to 7 percent could be caused by
 
  A) an increase in investment demand.
  B) a decrease in the expected profit.
  C) an increase in people's disposable incomes.
  D) an expansion that increased both saving and investment by the same amount.

[1_Step_At_ATime]

Answer to Question 1

A

Answer to Question 2

A