If a 5 percent change in the price of a good leads to a 10 ...

[appyboo]

If a 5 percent change in the price of a good leads to a 10 percent change in the quantity supplied, then the supply of the good is ________ and the elasticity of supply is ________.
 
  A) inelastic; 0.5
  B) inelastic; 2.0
  C) elastic; 0.5
  D) elastic; 2.0

Question 2

In the short run, a change in the nominal exchange rate brings an equivalent change in the real exchange rate.
 
  Indicate whether the statement is true or false

[vish98]

Answer to Question 1

D

Answer to Question 2

TRUE

[appyboo]

TYSM

[T4T]

Excellent