If the price elasticity of demand for radios is 2.5 (dropping the minus sign), then a 50 percent reduction in the price of radios will lead to
A. the sale of 200 additional radios.
B. the sale of 125 percent more radios than before.
C. the sale of 150 percent more radios than before.
D. the sale of 25 percent more radios than before.
Answer: B
You might also like to view...
The most severe remaining debt problems are in
a. Latin America. b. Africa c. East Asia d. Western Europe e. none of the above
In many rural areas, electric generation and distribution utilities were initially set up as cooperatives in which the electricity customers were member-owners. Like most cooperatives, the objective of these firms was to:
A) maximize profits for the member-owners. B) maximize total revenue that could be redistributed to the member-owners. C) operate at zero profit in order to provide low electricity prices for the member-owners. D) minimize the costs of production.
You should use the QLR test for breaks in the regression coefficients, when
A) the Chow F-test has a p value of between 0.05 and 0.10. B) the suspected break data is not known. C) there are breaks in only some, but not all, of the regression coefficients. D) the suspected break data is known.
How do adherents of traditional business cycle theories differ from real business cycle theorists? List the difference between their views on the role of government