This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The price elasticity of demand coefficient for gourmet coffee is estimated to be equal to 1.6 . It ... (Read 128 times)

Yi-Chen

  • Hero Member
  • *****
  • Posts: 550
on: Jun 30, 2018
The price elasticity of demand coefficient for gourmet coffee is estimated to be equal to 1.6 . It is expected, therefore, that a 10 increase in price would lead to:
 a. a 16 decrease in the quantity of gourmet coffee demanded.
  b. a 16 increase in the quantity of gourmet coffee demanded.
  c. an 8 decrease in the quantity of gourmet coffee demanded.
  d. an 8 increase in the quantity of gourmet coffee demanded.

Question 2

If a bank receiving a new deposit of 200,000 would be able, as a result, to increase their lending by at most 150,000, then the required reserve ratio equals:
 a. 4.
 b. 25.
  c. 40.
  d. 50.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

pangili4

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

b


Yi-Chen

  • Member
  • Posts: 550
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

kswal303

  • Member
  • Posts: 316
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Ground coffee magnified Ground coffee magnified
Many ideologies stem from older theories. The ideas of the philosophers are simplified. Ideologies Many ideologies stem from older theories. The ideas of the philosophers are simplified. Ideologies
Global Coffee Production Global Coffee Production
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
Before After Coffee Before After Coffee
The xy plane is painted with a uniform surface charge density which is equal to 40 nC/m2 . ... The xy plane is painted with a uniform surface charge density which is equal to 40 nC/m2 . ...
Video: Bone Growth and Remodeling

For a complete list of videos, visit our video library