The demand curves for gold in New York and Zurich can both be represented by a line with negative slope, -b. When the price is zero the demand for gold is x ounces higher in New York than in Zurich.
At the current price of gold the price elasticity of demand for gold in New York and Zurich is -3 and -4 respectively. The value of x equals A) a quarter of the current demand for gold in New York
B) a third of the current demand for gold in New York
C) a half of the current demand for gold in New York
D) three-quarters of the current demand for gold in New York
E) none of the above
Question 2
Pressure to redistribute the economic pie is strong when the economy is booming.
Indicate whether the statement is true or false
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