Demand is price inelastic if ________ percentage change in the price leads to a ________ percentage change in the quantity demanded
A) a small; large
B) a large; small
C) any; large
D) Both answers A and B are correct.
E) None of the above answers is correct.
B
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________________________: price concessions from the seller, the expected cost of expenditures must be added to the observed transaction price, if, in fact, the expenditures were made after the acquisition.
Fill in the blank(s) with the appropriate word(s).
Consider a consumer who is searching for the lowest price for good X. The consumer knows that 75 percent of the time she will find a store charging $10 and 25 percent of the times she will find a store charging $7. The consumer will search again if her marginal cost of searching is constant and is:
A. between $1.00 and $2.25. B. strictly higher than $3. C. exactly $0. D. lower than or equal to $0.75.
A value of the absolute price elasticity of demand equal to 0.25 indicates that
A. a 1% decrease in price leads to a 2.5% increase in quantity demanded. B. a 10% decrease in price leads to a 25% increase in quantity demanded. C. a 10% decrease in price leads to a 2.5% increase in quantity demanded. D. a 0.25% decrease in price leads to a 1% increase in quantity.
The income of U.S. citizens working abroad counts in U.S. GDP.
Answer the following statement true (T) or false (F)