Author Question: When the Blue Ocean Surfboard Company lowered the price of surfboards by 20, it sold 10 more ... (Read 34 times)

bobthebuilder · **on:** Jun 30, 2018

When the Blue Ocean Surfboard Company lowered the price of surfboards by 20, it sold 10 more surfboards. The price elasticity of demand for surfboards is:
a. 2.
b. 1/2.
c. 1.
d. 20.

Question 2

A combination of an increase in the discount rate and an open market sale of government securities by the Fed would:
a. increase the money supply.
b. decrease the money supply.
c. leave the money supply unchanged.
d. have an indeterminate effect on the money supply.