Author Question: When Monica's Catering lowered the price of catered meals from 60 per person to 20 per person, the ... (Read 108 times)

WhattoUnderstand · **on:** Jun 29, 2018

When Monica's Catering lowered the price of catered meals from 60 per person to 20 per person, the quantity demanded doubled from 500 meals to 1,000 meals.

You can conclude that the demand for Monica's catered meals over the price range of 20 to 60 is A) upward sloping.
B) unit elastic.
C) elastic.
D) inelastic.

Question 2

Epsilon is a country whose unit of currency is the omega. New information leads people to expect that the omega will appreciate next year.

To keep the foreign exchange value of the omega fairly steady, the Bank of Epsilon will ________ enough omegas on the foreign exchange market so that the ________ omegas will ________. A) buy; demand for; increase
B) sell; supply of; increase
C) buy; demand for; decrease
D) buy; supply of; decrease