If the price elasticity of demand for a good is 0.8, then a
A) 1 percent rise in the price leads to a 0.8 percent decrease in the quantity demanded.
B) one dollar rise in the price leads to a 0.8 percent decrease in the quantity demanded.
C) 1 percent rise in the price leads to an 80 percent decrease in the quantity demanded.
D) 1 percent rise in the price leads to an 8 percent decrease in the quantity demanded.
A
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Price discrimination allows a monopolist to make higher profits
a. True b. False Indicate whether the statement is true or false
A "single tax" on land was proposed in the nineteenth century by
a. Lloyd George. b. Henry George. c. George Washington. d. George Sands.
Sunshine's Organic Market sells organic produce. Assume that labor is the only input that varies for the firm. The store manager has determined that if she hires 12 workers, the store can sell 300 pounds of produce per day. If she hires 13 workers, the store can sell 370 pounds of produce per day. The store earns $4 for each pound of produce that it sells, and the manager pays each worker $80 per
day. Assuming no changes in either the daily wages paid to store workers or the price at which the store sells its produce, what is the minimum number of sales that would allow the firm to increase its profits by hiring a 14th worker? a. 374 pounds per day b. 380 pounds per day c. 390 pounds per day d. 450 pounds per day
Suppose the price of good X increases and consumers purchase more of good Y. Which of the following statements is necessarily true about good Y? a. Good Y is a normal good
b. Good Y is an inferior good, but not a Giffen good. c. Good Y is an inferior good and a Giffen good. d. Good Y could be a normal or inferior good.