Suppose that elasticity has been reliably measured as 1.55 and the unit price decreases from $20 to $17.50 . How much will quantity demanded increase?
The percentage change in price is 2.5/18.75 = .1333 . The percentage change in quantity is .1333 × 1.55 = .2067 . In percentages, the change is 20.67 percent.
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Which of the following is false of perfectly competitive firms? a. As new firms enter an industry where sellers are earning economic profits, the result will include a reduction in the equilibrium price. b. In a constant-cost industry, the industry does not use inputs in sufficient quantities to affect input prices
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The Gramm-Rudman-Hollings Act of 1985 was designed to set a timetable to
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