Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price increases from $18 to $20 is
A. -3.29.
B. -0.33.
C. -1.
D. -1.37.
Answer: A
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A change in the price of one good leads to all of the following, except one. Which is the exception?
a. a change in the slope of the budget line b. a new point of consumer utility maximization c. a change in the trade-off between the two goods d. a change in the marginal utility of each unit of the good e. a change in the marginal utility per dollar spent on the good
If U.S. prices increase relative to the rest of the world, we would expect:
A. net exports to be unaffected. B. net exports to increase. C. net exports to decrease. D. government spending to increase.
Between 1995 and 2015, the consumer price index for medical care grew more slowly than the rest of the prices in the economy.
Answer the following statement true (T) or false (F)
As the tax rate decreases, the government spending multiplier
A. increases. B. does not change. C. decreases. D. could either increase or decrease depending on the value of the MPC.