If the price of textbooks increases by one percent and the quantity demanded falls by one-half percent, then the price elasticity of demand is equal to:
A. 0.5.
B. 5.
C. 2.
D. 0.05.
Answer: A
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Which of the following statements is true?
A) Savings of households are independent of tax rates. B) Higher interest rates typically encourage more savings. C) An increase in the consumption of households increases savings of the households. D) Households that expect an increase in future earnings are likely to save more.
In the figure above, with the rent ceiling ________ units of housing are available, and black market rents might be as high as ________ a month
A) 3,000; $625 B) 6,000; $400 C) 3,000; $550 D) 4,000; $550 E) 4,000; $625
Under a 100-percent-reserve banking system, banks do not influence the supply of money
a. True b. False Indicate whether the statement is true or false
Changes in the value of the euro affect the economies of
A. All European countries, but there would be no significant impact on countries outside Europe. B. Only those countries using the euro as currency. C. No countries as long as exchange rates are flexible. D. Potentially the entire world.