When the price of coffee increases 5%, quantity demanded decreases 10%. The price elasticity of demand for coffee is ________ and total revenue from coffee sales will ________.
A. elastic; decrease
B. inelastic; increase
C. elastic; increase
D. inelastic; decrease
Answer: A
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Refer to Table 19-1. Fill in the missing values in the above table. Assume the Big Mac is selling for $4.79 in the United States. Explain whether the U.S
dollar is overvalued or undervalued relative to each of the other currencies and predict what will happen in the future to each exchange rate.
A perfectly competitive firm breaks even at a price equal to its minimum average total cost
Indicate whether the statement is true or false
Over 65% of those age 85 or older are female
Indicate whether the statement is true or false
Exhibit 13-3 A monopolist
In Exhibit 13-3, if this industry is regulated and the regulatory commission wants price to be set equal to marginal cost, the proper price and output combination to be set is:
A. price = $8; output = 30. B. price = $5; output = 40. C. price = $4; output = 25. D. price = $3; output = 50.