If the elasticity of supply coefficient for a good is 6, we know: ...

[JMatthes]

If the elasticity of supply coefficient for a good is 6, we know:
 a. that for every 1 increase in quantity, there will be a 6 increase in price.
  b. that for every 1 increase in quantity, there will be a 6 decrease in price.
  c. that for every 6 increase in quantity, there will be a 1 increase in price.
  d. that for every 6 increase in quantity, there will be a 1 decrease in price.

Question 2

Other things equal, monetary policy to offset a contractionary gap will tend to
 a. Increase the money supply and lower interest rates
 b. Increase the money supply and increase interest rates
  c. Decrease the money supply and lower interest rates
  d. Decrease the money supply and increase interest rates

[xiaomengxian]

Answer to Question 1

c

Answer to Question 2

a

[JMatthes]

Wow, this really help

[kishoreddi]

Thanks for the timely response, appreciate it