Suppose the price elasticity of demand for oil is 0.1. In order ...

[madam-professor]

Suppose the price elasticity of demand for oil is 0.1. In order to lower the price of oil by 20 percent, the quantity of oil supplied must be increased by
 
  A) 200 percent.
  B) 20 percent.
  C) 2 percent.
  D) 0.2 percent.

Question 2

If net taxes exceed government expenditures, the government sector has a budget ________ and government saving is ________.
 
  A) surplus; positive
  B) surplus; negative
  C) deficit; positive
  D) deficit; negative

[nekcihc358]

Answer to Question 1

C

Answer to Question 2

A

[madam-professor]

Thanks for the timely response, appreciate it

[nanny]

YES! Correct, THANKS for helping me on my review