. With reference to the demand schedule in Figure 2.2 calculate the arc elasticity of demand between the prices of (a) 3 and 6, (b) 6 and 9, (c) 9 and 12, (d) 12 and 15, and (e) 15 and 18. 2. A city bus service charges a uniform fare for every journey made. When this fare is increased from 50p to 1 the number of journeys made drops from 80,000 a day to 40,000. Calculate the arc elasticity of demand over this section of the demand schedule for bus journeys. 3. Calculate the arc elasticity of demand between (a) 5 and 10, and (b) between 10 and 15, for the demand schedule shown in Figure 2.3. D 0 120 Quantity 5 15 Price 10 40 80 Figure 2.3 4. The data below show the quantity demanded of a good at various prices. Calculate the arc elasticity of demand for each 5 increment along the demand schedule. Price 40 35 30 25 20 15 10 5 0 Quantity 0 50 100 150 200 250 300 350 400.. dw

courses/110662/quizzes/339260/take decreases in aggregate demand Question 30 1 pts Suppose autonomous consumption decreases. This reduction in autonomous consumption will cause which of the following to occur? The consumption function becomes less steep. The consumption function shifts up. The consumption function becomes steeper. The consumption function shifts down. Question 31 1 ptsQUESTION 49 In the short run, unanticipated inflation typically leads to workers' thinking the real wage has been reduced. O higher rates of unemployment. O lower rates of unemployment. O decreases in aggregate demand. QUESTION 50 The Phillips curve is thought to reflect the relationship between inflation and real GDP. O the price level and inflation O unemployment and inflation. unemployment and real GDPSuppose the central bank raises interest rates. Which statement is a logical explanation of how this will impact aggregate demand? Question 5 options: Higher interest rates cause an increase in savings and government spending, which leads to a reduction in aggregate demand. bj Higher interest rates attract funding from abroad, which provides an injection into the country's economy, raising aggregate demand. Higher interest rates cause reductions in investment in capital and houses, which reduce aggregate demand. dj Higher interest rates create a greater incentive for investments, which increases aggregate demand.A technological advance will increase longru n aggregate su pply. "\"= increase short-run aggregate supply. "T's- increase aggregate demand. ' both increase long-run aggregate supply and increase shortrun aggregate supply. both increase long-run aggregate supply and increase aggregate demand. "' both increase short-run aggregate supply and increase aggregate demand. QUESTION 14 A technological advance in the economy will lead to price level; output and natural rate of unemployment. \" a higher; a higher; a lower \"f? a lower; a higher; a lower a higher; a higher; no change in "'= a lower; higher; no change in "f? no change in; no change in; no change in