Suppose a good has a downward-sloping, straight-line demand curve. If the price elasticity of demand is 2.5 when the price is $10 per unit, then the price elasticity of demand when the price is $7 per unit could be
A. approaching infinity.
B. 2.7.
C. 2.5.
D. 1.7.
Answer: D
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The greatest benefit to an economy from international trade is:
A. greater employment in the export sector of the economy. B. the economic power it gives a nation over other countries. C. full employment of its labor force. D. consumption beyond domestic production possibilities.
Development economists suggest that the best strategy for the poorest DVCs to break out of their poverty is to implement policies that boost their:
A. Population growth for a greater labor supply B. Output and slow down their population growth C. Birth rates to expand their available resources D. Mortality rates to slow down their population growth
Which of the following quotations best captures the idea of opportunity cost?
A. “Opportunity knocks but once.” B. “Every choice involves a sacrifice.” C. “Let’s not ask for the moon; we have the stars.” D. “Fools rush in where wise men fear to tread.” E. “All that glitters is not gold.”
The national government can have a significant impact on the value of real estate through:
A. property tax policy B. income tax policy C. building Codes D. real estate licensing requirements