Using average price and average quantity, calculate the price ...

[justinmsk]

Using average price and average quantity, calculate the price elasticity of demand if a price rise from 8 to 10 and decreases the quantity demanded from 20 units to 15 units. The price elasticity of demand equals
 
  A) 2.5.
  B) 1.29.
  C) 0.78.
  D) 0.06

Question 2

If the interest rate on Japanese yen assets falls while interest rates in the United States remain constant, the
 
  A) quantity of dollars demanded will increase.
  B) quantity of dollars demanded will decrease.
  C) demand for dollars will increase.
  D) demand for dollars will decrease.

[sultana.d]

Answer to Question 1

B

Answer to Question 2

C