According to the above table, what is the absolute price elasticity of demand if price falls from $8.00 to $7.50?
A) 4.00
B) 2.82
C) 1.80
D) 1.21
B
You might also like to view...
Anticipating the decisions others will make in response to your decision while knowing the others are anticipating your response is known as
A) strategic interaction. B) the wait-and-see game. C) psychic intuition. D) best-response analysis.
Use the data in the table above and suppose that labor is the only variable factor of production. When 122 dozen donuts are produced at Decent Donuts, the MC curve
A) has a positive slope. B) shows the effect of increasing marginal returns. C) Both answers A and B are correct. D) Neither answer A nor B is correct.
Explain what occurs in the capital market
What will be an ideal response?
Generally, most economists feel that a sales tax is:
a. regressive. b. proportional. c. progressive. d. fair.