If the absolute price elasticity of demand for good A is 0.2, when there is a 10 percent increase in price, we can conclude that quantity demanded
A. has fallen by 20 percent.
B. has fallen by 50 percent.
C. has fallen by 5 percent.
D. has fallen by 2 percent.
Answer: D
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In the 1990s, humanitarians traveled to Sudan to:
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
The productivity curve shifts upward when
A) technology advances. B) physical capital increases. C) hours of labor increase. D) hours of labor decrease. E) human capital decreases.
Which of the following best describes the short-run supply curve for an individual perfectly competitive firm?
A) It is the firm's marginal cost curve. B) It is the upward-sloping part of the firm's marginal cost curve. C) It is the vertical axis at prices less than minimum average variable cost and is the firm's marginal cost curve at prices above minimum average variable cost. D) It is the vertical axis at prices less than minimum average total cost and is the firm's marginal cost curve at prices above minimum average total cost.