It is an elastic good and to increase the revenue, the producer should decrease the price of the good.
<u>Explanation:</u>
The good that has a price elasticity of demand with a coefficient of 1.6, the good is said to have elastic demand. For such a good, the producer should decrease the price of that good to increase its revenue. With the decrease in the price, the demand of the good will increase significantly. This will help him increase his revenue.
Answer:
$50
Explanation:
If the required reserves are 5%, then the money multiplier = 1 / 5% = 20. If the FED wants to increase the money supply by $1,000, then it needs to initially inject $1,000 / 20 = $50 into the economy.
When the FED wants to increase the money supply, it engages in an expansionary monetary policy. If it wants to decrease the money supply, then it will engage in a contractionary monetary policy.
they are a food or type of necessity given at no cost or profit