The point price elasticity of demand is -1/2. The price of the product increases from $1.00 to $1.10. Given the information in Scenario 4.3, the quantity demanded will decrease by approximately:
A) 5 units.
B) 5 percent.
C) 10 units.
D) 10 percent.
E) none of the above
B
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Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares
A) the total revenue from sales of printers to the total cost of producing all the printers. B) the extra revenue from selling a few additional printers to the extra costs of producing the printers. C) the extra revenue from selling a few additional printers to the average cost of producing the additional printers. D) HP's printers to printers from competing companies, such as Lexmark.
The marginal benefit Kyra gets from eating a second sandwich is
a. the total benefit Kyra gets from eating two sandwiches minus the total benefit she gets from eating one sandwich. b. the same as the total benefit she gets from eating two sandwiches. c. less than the marginal cost of eating the second sandwich since she chose to eat the second sandwich. d. the total benefit Kyra gets from eating three sandwiches minus the total benefit she gets from eating two sandwiches.
Figure 3.3 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $7, we would expect that:
A. demand will decrease until quantity demanded equals quantity supplied. B. supply will increase until quantity demanded equals quantity supplied. C. price will increase until quantity demanded equals quantity supplied. D. there will be no change in the price since the market is in equilibrium.
The ________ broadly we define a market, the less difficult it becomes to find ________.
A. less; substitutes B. more; goods independent of each other C. more; substitutes D. more; complements