If the price elasticity of demand for football tickets is estimated to be 4.5, then a 10 percent increase in football ticket prices would be expected to cause a:
A. 4.5 percent decrease in quantity demanded.
B. 4.5 percent increase in quantity demanded.
C. 45 percent decrease in quantity demanded.
D. 45 percent increase in quantity demanded.
Answer: C
You might also like to view...
Based on the model, the price at the efficient equilibrium is
Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q; MSB = 30 – 0.3Q; MEB = 0. a. PE = $18 b. PE = $22.50 c. PE = $20 d. PE = $40
A real variable is
a. measured in terms of after-tax dollars b. measured in terms of dollars and not foreign currency c. measured in nominal terms d. measured in terms of current dollars e. measured in terms of purchasing power
The original source of capital is __________.
Fill in the blank(s) with the appropriate word(s).
The expected damage to innocent third parties per unit of the good produced is shown as the "external cost" in Figure 27.1. An unregulated competitive market for the product produces a quantity of Q* units, which sell for a price of P* per unit. If the competitive market price reflected the full social cost per unit of producing and consuming this product (i.e., both private and external costs), the quantity produced by this competitive industry would be 
A. zero units. B. Q? units. C. Q?-Q* units. D. Q* units.