Consider luxury weekend hotel packages in Las Vegas. When the price is $250, the quantity demanded is 2,000 packages per week. When the price is $280, the quantity demanded is 1,700 packages per week. Using the midpoint method, the price elasticity of demand is about
a. 1.43, and an increase in the price will cause hotels' total revenue to decrease.
b. 1.43, and an increase in the price will cause hotels' total revenue to increase.
c. 0.70, and an increase in the price will cause hotels' total revenue to decrease.
d. 0.70, and an increase in the price will cause hotels' total revenue to increase.
a
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If, in the coordination failure model, the nominal money supply acts as a sunspot variable, then it is likely that the nominal money supply would
A) be procyclical. B) be acyclical. C) be countercyclical. D) alternatively appear to be procyclical and countercyclical.
An increase in real interest rate ………………cost of investment # randomize
A. Decreases B. Increases C. Does not affect D. Diminishes
Department stores are monopolistically competitive because stores differ in the amount of customer service they provide.
Answer the following statement true (T) or false (F)
If the average annual rate of economic growth is 4? percent, approximately how long will it take for the? nation's per capita real GDP to? double?
What will be an ideal response?