Author Question: Suppose 50 loaves of bread are demanded at a particular price. If that price rises by 2 percent, the ... (Read 105 times)

jon_i · **on:** Jun 30, 2018

Suppose 50 loaves of bread are demanded at a particular price. If that price rises by 2 percent, the quantity demanded decreases to 49.5 loaves of bread. This implies that the:
a. demand is elastic.
b. demand is unit-elastic.
c. price elasticity of demand is equal to 2.
d. demand is inelastic.
e. income elasticity of demand is equal to 0.5.

Question 2

The term used to describe a more realistic conception of human problem-solving that assumes less than perfect analysis is:
a. framing.
b. compartmentalizing.
c. countercyclical policy.
d. bounded rationality.