The Economics in Action in the text mentions that the elasticity ...

[SO00]

The Economics in Action in the text mentions that the elasticity of demand for agricultural products is 0.42. If a drought boosts the price of corn 25 percent, then we can calculate the quantity of corn demanded ________.
 
  A) increased by 10.5 percent
  B) decreased by 10.5 percent
  C) increased by 8.4 percent
  D) decreased by 8.4 percent

Question 2

In the above figure, suppose the economy is initially at point A. People come to expect the future U.S. exchange rate to be lower. As a result, there is a change from point A to a point such as ________.
 
  A) point B
  B) point C
  C) point D
  D) point E

[moormoney]

Answer to Question 1

B

Answer to Question 2

D