If the price of cheese falls by 1 percent and the quantity demanded rises by 3 percent, then the price elasticity of demand for cheese is equal to:
A. 30.
B. 0.333.
C. 3.
D. 0.30.
Answer: C
You might also like to view...
If a firm buys some labor in a competitive market and some labor as a monopsonist, the firm is most likely to
A) pay the same wage to both types of labor. B) pay a lower wage to the labor purchased in the competitive market. C) pay a higher wage to the labor purchased in the competitive market. D) not exercise any of its monopsony power.
An inferior good is one that consumers buy in smaller quantities when incomes rise
a. True b. False Indicate whether the statement is true or false
Over the past 50 years, the U.S. poverty rate was at its lowest level in
a. 1973. b. 1980. c. 1990. d. 2008.
Suppose every good costs $8 per unit and Molly holds $120 . What is the real value of the money she holds?
a. $120 . If the price of goods rises, to maintain the real value of her money holdings she needs to hold more dollars. b. $120 . If the price of goods rises, to maintain the real value of her money holdings she needs to hold fewer dollars. c. 15 units of goods. If the price of goods rises, to maintain the real value of her money holdings she needs to hold more dollars. d. 15 units of goods. If the price of goods rises, to maintain the real value of her money holdings she needs to hold fewer dollars.