i would say its either B or C...but imma go with the answer C
Answer:
Price ceiling binding
price floor binding
Price floor binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The maximum price ($2.50) is less than the equilibrium price($3) . So it is a binding price ceiling
The minimum price ($3.40) is greater than the equilibrium price($3) . So it is a binding price floor
Answer:
c
Explanation:
Foreign exchange is the rate at which one currency is exchange for another currency
for example : $1 = N 382.50
If a currency appreciates, it value increases
e.g. if the dollar appreciates against the naira, the exchange rate becomes $1 = N 500
If the central bank prevents an appreciation of its currency by intervening in the foreign exchange market and selling its currency for foreign currency, domestic money supply increases and aggregate demand decreases. this would lead to a reduction in the value of the currency
E. decrease in both number of shares outstanding and the market price per share
Answer:
A) normal; elastic
Explanation:
As we know,
1. Perfectly inelastic = When elasticity is zero
2. Inelastic = When elasticity is below than one
3. Unitary elastic = When elasticity is equal to one
4. Elastic = When elasticity is above than one
5. Perfectly elastic = When elasticity is in infinity
And, the income elasticity of demand would equal to
= (Percentage Change in quantity demanded) ÷ (Percentage Change in income)
= (10%) ÷ (5%)
= 2%
As we see that the income elasticity of demand is more than one which represents the elastic plus in normal good it shows a positive relationship between the income and quantity demanded and the elasticity also comes in positive.
