(Figure: The Demand Curve) Look again at the figure The Demand Curve. Using the midpoint method, the price elasticity of demand between $6 and $8 is approximately:
A) 4.5.
B) 2.33.
C) 0.23.
D) 0.45.
B) 2.33.
You might also like to view...
A market with a negative externality
a. will be regulated by the government b. is an example of a natural monopoly c. will be Pareto efficient, as long as bargaining costs are high enough d. will produce less than the efficient quantity, thereby creating a welfare loss e. will produce more than the efficient quantity, thereby creating a welfare loss
Social Security payroll taxes are examples of
a. progressive taxation. b. regressive taxation. c. proportional taxation. d. marginal taxes.
Until the passage of the Airline Deregulation Act of 1978, the Civil Aeronautics Board controlled all of the following except
A. fares. B. assigned routes. C. profits. D. entry into the industry.
DrugCo has two demand equations for its retail products (pain reliever and cancer):Pain relief: P = 100 ? 10 QCancer drug: P = 200 ? 15 Q The marginal cost of production is $30. Which product should go to the retail market and which should go to the wholesale market? What are the corresponding retail and wholesale prices? What would happen if the sales are switched from the retail to the wholesale and vice versa?
What will be an ideal response?