Author Question: When the price of oranges increases from 4 to 6 per bag, the quantity demanded of oranges decreases ... (Read 37 times)

Marty · **on:** Jun 29, 2018

When the price of oranges increases from 4 to 6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags. The price elasticity of demand over this price range is equal to

A) 3.
B) 3/7 or 0.4286.
C) 1/3 or 0.3333.
D) 1/4 or 0.25.

Question 2

With an increase in the capital stock, the short-run aggregate supply curve

A) remains as it is.
B) shifts rightward.
C) shifts leftward.
D) becomes steeper.