Answer:
the same
Explanation:
it doesn't matter what was the original price elasticity of demand that the economist calculated in the first place, but if he/she changes the metrics, it wouldn't change the answer at all.
Price elasticity of demand measures the percentage change in the quantity demanded of the product over the percentage change in the price of the product.
The percentage change is measured in %, not in dollars, gallons, quarts, pints, tons, inches, etc.
Answer:
British pound: appreciate
Explanation:
International Fisher Theory is an economic theory which establishes a relationship between two country’s exchange and nominal interest rates of their currency.
It states that the expected inconsistency between the exchange rate of two currencies is approximately equal to the difference between their countries' nominal interest rates.
If an investor purchases a five-year U.S. bond that has an annual interest rate of 6% rather than a comparable British bond that has an annual interest rate of 4%, then the investor, at a minimum, must be expecting the British pound to appreciate at a rate less than 2% per year.
The reasoning behind it is that a country with a higher interest rate will also very likely to have a higher inflation rate.
Answer:
A. your friend most likely should not be quite so excited because the extremely high cost of living in New York City means his real salary increase will be less than he imagined.
Explanation:
Here are the options to this question :
A. your friend most likely should not be quite so excited because the extremely high cost of living in New York City means his real salary increase will be less than he imagined.
B. your friend has no reason to be excited because higher pay implies more job responsibilities and more working hours.
C. your friend has every reason to be excited because he will be getting paid 120% of what he used to be paid.
D. your friend has reason to be excited because in a bigger city he will have more things to do and his higher salary will allow him to spend on those activities.
Cost of living in a big town is higher than living in a small town. Even though the nominal income of my friend has increased, the real income might not have increased due to the high cost of living in a big city.
Nominal income is the money income being earned. My friend's nominal income would increase from $50,000 to $60,000 if he takes the new job.
Real income is the purchasing power of income
Answer:
there is a direct relationship between price and the quantity supplied.
Explanation:
If price rises, supply will rise because suppliers will see the opportunity to earn more profit.
If price falls, supply will fall due to low opportunity of profit to the suppliers.
