Author Question: If the price elasticity of demand for a good is 0.8, then a A) 1 percent rise in the price leads ... (Read 77 times)

asan beg · **on:** Jun 29, 2018

If the price elasticity of demand for a good is 0.8, then a

A) 1 percent rise in the price leads to a 0.8 percent decrease in the quantity demanded.
B) one dollar rise in the price leads to a 0.8 percent decrease in the quantity demanded.
C) 1 percent rise in the price leads to an 80 percent decrease in the quantity demanded.
D) 1 percent rise in the price leads to an 8 percent decrease in the quantity demanded.

Question 2

Which of the following are parts of the business cycles?

A) peak and potential GDP
B) real GDP and potential GDP
C) recession and expansion
D) inflation and recession