When the price of a good is $5, the quantity demanded is 100 units per month; when the price is $7, the quantity demanded is 80 units per month. Using the midpoint method, the price elasticity of demand is about
a. 0.22.
b. 0.67.
c. 1.33.
d. 1.50.
b
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If the quantity of money starts to grow more rapidly than real GDP and velocity does not change, the result is
A) slower growth in the price level. B) an increase in investment. C) more rapid growth in potential GDP. D) the inflation rate rises. E) an eventual slowing in the growth rate of the quantity of money.
The three types of unemployment are
A) voluntary, involuntary, and structural. B) voluntary, part-time, and cyclical. C) frictional, part-time, and involuntary. D) frictional, structural, and cyclical.
Refer to Figure 9.8. With no government interference, the country pictured will
A) import 500 tons of sugar. B) import 300 tons of sugar. C) import 200 tons of sugar. D) import no sugar. E) export sugar.
Assume that an economy has 1500 workers, each working 2000 hours per year. If the average real output per worker-hour is $20, then total output or real GDP will be:
A. $3 million B. $30 million C. $45 million D. $60 million