If the price of cell phones increases by 5 percent and the quantity demanded falls by 2 percent, the absolute value of the price elasticity of demand is
A. 5 percent.
B. 0.4.
C. 5.0.
D. 2.1.
Answer: B
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A) highest; second-highest bid B) highest; bid C) second-highest; bid D) second-highest; second-highest bid
The demand for Ben & Jerry's ice cream is _________________ than is the demand for all ice cream because _______________.
A. less price elastic; the scope of the market for Ben & Jerry's is less broadly defined B. more price elastic; the scope of the market for Ben & Jerry's is less broadly defined C. less price elastic; Ben & Jerry's has fewer available substitutes D. more price elastic; Ben & Jerry's has fewer available substitutes
Ceteris paribus, for a farmer, corn and wheat are
A. Substitutes in production. B. Unrelated in a farmer's decision. C. Complements in production; by-products. D. None of the choices are correct.
If the price of automobiles were to decrease substantially, the demand curve for public transportation would most likely
A) shift right. B) shift left. C) remain unchanged. D) remain unchanged while quantity demanded would change.