Using Figure 6-2, calculate the price elasticity of demand (dropping all minus signs) between P = 10 and P = 12.
A. 2.20
B. 0.45
C. 0.80
D. 1.25
Answer: A
You might also like to view...
Which of the following statements is incorrect with respect to the 1980s?
A) Corporate financing migrated from the short-term bank loan market to the commercial paper market. B) Money market funds could offer transactions services coupled with a diversified money market investment vehicle at very low costs because of advances in computer technology. C) Specialized monitoring services of commercial banks became more important because of new asset valuation models. D) Innovations in information technology made some small borrowers more "bankable."
If a firm in a perfectly competitive market faces a market price of $8, and it decides to increase its production from 300 units to 550 units, the firm's total revenue will:
A. increase from $2,400 to $4,400. B. decrease from $4,400 to $2,400. C. stay the same at $8. D. likely rise, but it cannot be determined by how much.
The demand for loanable funds comes from saving and the supply of loanable funds comes from investment
a. True b. False Indicate whether the statement is true or false
Tax-haven subsidiaries categorically referred to as International Offshore Financial Centers have all of the following characteristics EXCEPT ________.
A) a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm. B) a stable currency to permit easy conversion of funds into and out of the local currency. This requirement can be met by permitting and facilitating the use of Eurocurrencies. C) a stable government that encourages the establishment of foreign-owned financial and service facilities within its borders. D) All of these answer choices are characteristics of tax-haven subsidiaries.