If demand is unit elastic, then a 10 percent increase in price will lead to a 10 percent drop in quantity demanded.
Answer the following statement true (T) or false (F)
True
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Mia wants to buy a book. The economic perspective suggests that Mia will buy the book if the
A. marginal cost of the book is greater than or equal to its marginal benefit. B. marginal cost of the book is affordable for her. C. marginal benefit of the book is greater than zero. D. marginal benefit of the book is greater than or equal to its marginal cost.
The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10 and Jane's budget is $88. What is Jane's total utility when she maximizes her utility?
A) 70 units B) 1516 units C) 2536 units D) 2586 units
In the United States in 2014, the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about
A) 2%. B) 29%. C) 44%. D) 98%.
A profit-maximizing price searcher will expand output to the point where
a. total revenue equals total cost. b. marginal revenue equals marginal cost. c. price equals average total cost. d. price equals marginal cost.