If the price elasticity of demand for a good is 5, then a 10 percent increase in price results in a
a. 0.5 percent decrease in the quantity demanded.
b. 2 percent decrease in the quantity demanded.
c. 5 percent decrease in the quantity demanded.
d. 50 percent decrease in the quantity demanded.
d
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When a group is discriminated against, its
A) wages fall but its employment does not. B) employment and its wages decrease. C) employment decreases but its wages do not. D) employment and its wages are unaffected.
As a result of the pay-as-you-go nature of Social Security financing, the continuation of benefit payments is dependent upon _____
a. new individuals entering the system b. the current tax level c. current economic growth rates d. the Baby Boomer's decision on when to retire
Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000 . The annual explicit costs of the materials used to make the cookie jars are $54,000 . Christine could earn $6,000 per year preparing taxes. In calculating the economic profit of her cookie jar business, the $6,000 that Christine gives up is counted as part of her business's
a. total revenue. b. explicit costs. c. implicit costs. d. marginal costs.
The Fed conducts an open-market purchase of Treasury bills of $10 million. If the required reserve ratio is 0.10, what change in the money supply can be expected using the oversimplified money multiplier?
A. $100 million B. $10 million C. 0 D. ?$10 million E. ?$100 million