If demand is unit elastic, then a 10 percent increase in price will lead to a 10 percent drop in quantity demanded
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
If Isabella buys two goods and the prices of both goods decrease by 50%
A) the budget constraint will be unchanged. B) the slope of the budget constraint will increase. C) the slope of the budget constraint will decrease. D) the budget constraint will shift outward in a parallel fashion.
Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. If the government places a $1.20 tariff on imported units of this good, by how much is producer surplus increased?
A. $3,200 B. $3,600 C. $5,400 D. $3,000
What is an ascending-value auction?
Suppose that the Department of Transportation is compiling data on traffic accidents and it wants to present the data in the form of an index. If there were 2,000 accidents in the base year, 2007, and 2,100 accidents in 2008, what is the value of the index for 2008?
a. 95.2 b. 100 c. 105 d. 200 e. 210