If the price of Pepsi-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then, according to the midpoint formula, the value of price elasticity of demand for Pepsi-Cola is
a. -0.5
b. -0.25
c. -1
d. -3
e. -2
D
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How might a monopolistically competitive firm continually earn economic profit greater than zero?
What will be an ideal response?
All of the following are examples of state regulations on banks except:
a. the Suffolk System b. the Safety Fund System c. required bond deposits with a state authority prior to chartering d. the Forstall System
Kathleen is considering expanding her dress shop. If interest rates rise she is
a. less likely to expand. This illustrates why the supply of loanable funds slopes downward. b. more likely to expand. This illustrates why the supply of loanable funds slopes upward. c. less likely to expand. This illustrates why the demand for loanable funds slopes downward. d. more likely to expand. This illustrates why the demand for loanable funds slopes upward.
Economic growth can be seen by an outward shift of:
A. The Production Possibility Frontier B. The Gross Domestic Barrier C. The Marginal Consumption Frontier D. The Minimum Efficient Scale