If the demand for a good is elastic, when the price increases, the
A) demand will decrease.
B) quantity demanded will increase.
C) quantity demanded will decrease by a smaller percentage than the price increased.
D) quantity demanded will decrease by a greater percentage than the price increased.
Question 2
The table below shows data for the U.S.
Nominal Interest Rate Inflation Rate
2013 5.25 4
2014 5 2
2015 4.5 4.3
Between 2014 and 2015 the real interest rate ________ and caused a ________ the demand for loanable funds curve.
A) increased; rightward shift
B) decreased; movement down along
C) increased; movement up along
D) decreased; leftward shift
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