Gold buyers are located in New York and Zurich. If the price of gold i
Gold buyers are located in New York and Zurich. If the price of gold is $400 an ounce, the worldwide demand for gold is 10,000 ounces. Also, the price elasticity of demand for gold in New York and Zurich are -3 and -2 respectively.
If the slope of each demand curve in New York is the same as in Zurich, then the quantity of gold demanded by dealers in Zurich is A) 10,000/3.
B) 5,000.
C) 6,000.
D) 10,000.
E) none of the above
ANSWER
C
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