Author Question: Suppose the price elasticity of demand for oil is 0.1. In order to lower the price of oil by 20 ... (Read 45 times)

madam-professor · **on:** Jun 29, 2018

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