If the price of Pepsi-Cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the demand for Pepsi-Cola is
a. unit elastic
b. perfectly elastic
c. perfectly inelastic
d. relatively elastic
e. relatively inelastic
D
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Goods and services provided by state and local governments are:
A. included in GDP at cost. B. excluded from GDP because they are not sold in markets. C. excluded from GDP because they are publicly provided. D. included in GDP at market prices.
Three macroeconomic factors that affect the demand for money are:
A. capital, labor, and technology. B. the nominal interest rate, capital, and labor. C. globalization, skill-biased technological change, and labor mobility. D. the nominal interest rate, real income, and the price level.
A rightward shift in the demand curve for a product will ordinarily result from
A. a decrease in the advertising budget. B. a decrease in the price of a competing product. C. an increase in consumer income. D. an increase in the price of a complementary good.
If all prices, including the price of beef, increase by 3 percent, then the relative price of beef has ________ and inflation ________.
A. remained constant; has not occurred B. increased; has occurred C. remained constant; has occurred D. increased; has not occurred