\Suppose the quantity demanded of steak is 200 million pounds per year when the price is $6 per pound and 400 million pounds per year when the price is $2 per pound. The price elasticity of demand for steak over this range is:
a. elastic.
b. inelastic.
c. unitary elastic.
d. perfectly elastic.
e. perfectly inelastic.
b
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The substitution effect of a real wage increase is observed when
A) the higher wage causes workers to take more leisure and work more hours. B) the higher wage causes workers to take more leisure and work fewer hours. C) leisure's higher opportunity cost causes workers to take less leisure and work more hours. D) leisure's higher opportunity cost causes workers to take more leisure and work fewer hours.
There are at least three exchange rates between every pair of national currencies
a. True b. False Indicate whether the statement is true or false
Exchange rates in what is termed the "medium run"
a. will be altered by an economic upswing because consumers buy more goods including imports when disposable income goes up. b. will be unaffected by economic changes in personal income or consumption spending. c. will appreciate for a country having an economic boom when others are not. d. All of the above are correct.
Assuming economic efficiency is maximized, when will more of a resource tend to be used in the first time period (as compared to future time periods)?
a. Whenever the discount rate is positive b. Whenever the marginal net benefits in the present are positive c. Whenever the discount rate is zero d. Whenever the user costs are positive in the present e. Whenever the marginal net benefits in the future are negative