Shaina and Mariah have a business that provides personal fitness training services. They know that after raising their prices from 50 to 75 per hour, the quantity of hours they spent delivering training services fell from 90 to 80 hours per week. The demand for their services is:
a. inelastic, with a price elasticity coefficient greater than one.
b. inelastic, with a price elasticity coefficient less than one.
c. elastic, with a price elasticity coefficient greater than one.
d. elastic, with a price elasticity coefficient less than one.
Question 2
If the Fed wanted to use all of its policy variables to decrease the supply of money, which of following would that include?
a. Increasing its open market sales of government securities.
b. Increasing the required reserve ratio.
c. Decreasing the interest rate it pays banks on bank reserves.
d. It would include all of the above.
Discipline-specific training can take years to perfect.
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