Refer to the figure below. When P = 4, the price elasticity of demand for the demand curve D1 is ________ and D2 is ________. 
A. 1/3; 2/3
B. 2/3; 1/3
C. 3; 3
D. 1/3; 3
Answer: A
You might also like to view...
The price elasticity of demand for widgets is -0.80. Assuming no change in the demand curve for widgets, a 16% increase in sales implies a _______ reduction in price.
A. 40% B. 1% C. 12% D. 20%
The cross elasticity between two goods is 2.5 . These goods are:
a. perfect complements. b. imperfect complements. c. unrelated. d. substitutes. e. inferior.
David Ricardo's assumption for economic rents for land was based on
A) the supply of land being a fixed quantity. B) a shortage of land. C) a surplus of land. D) total government control of land.
An increase in the productivity of labor over time will:
A. Decrease the value of time B. Increase the value of time C. Decrease the demand for labor-saving devices D. Decrease the demand for consumer goods and services