If a 6% decrease in price for a good results in a 2% increase in quantity demanded, the price elasticity of demand is
a. 0.02.
b. 0.33.
c. 3.
d. 4.
b
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Specialization and exchange result from differences in productivity that lead to
A) self-sufficiency. B) comparative advantage. C) absolute advantage. D) opportunity cost.
Compared to the free-market outcome, if the production of wheat were subsidized by the government,
A) the supply of wheat would increase. B) the quantity supplied of wheat would increase. C) the quantity demanded of wheat would increase. D) all of the above would occur. E) none of the above would occur.
In equilibrium, which of the following conditions is common to both unregulated monopoly and pure competition?
A) P = MR B) AR = ATC C) MR = MC D) MC = P
Texas requires drivers to carry automobile collision insurance. Texas views this type of insurance as a
a. merit good b. public good c. nonrival good d. nonexcludable good e. voluntary good