When the price elasticity of demand for a good is 1.5, this means that a 1 percent change in price creates a ______ in quantity demanded
a. 0.1 percent increase
b. 1.5 percent decrease
c. 1.5 percent increase
d. 15 percent increase
e. 15 percent decrease
B
You might also like to view...
Suppose the civilian non-institutional population equals 100,000 persons; the civilian labor force equals 75,000 persons; there are 70,000 employed persons and 5,000 unemployed persons. If 5,000 persons who are currently "not in the labor force" decide to join the civilian labor force, and 3,000 of them are unemployed, then
A) both the unemployment and the employment rate rise. B) both the unemployment and the employment rate fall. C) the unemployment rate rises and the employment rate falls. D) the unemployment rate falls and the employment rate rises.
Researchers have found that the income of obese women is about 17 percent lower than that of women who are of the recommended weight. This result implies that:
A. obese women earn less because employers discriminate against them. B. the relationship between obesity and income is accidental. C. obese women earn less either because they are less productive or because employers discriminate against them. D. obese women earn less because they are less productive.
Refer to the above graph. What combination would most likely cause a shift from AD 1 to AD 3?
An increase in taxes and an increase in government spending A decrease in taxes and a decrease in government spending An increase in taxes and a decrease in government spending A decrease in taxes and an increase in government spending
In which industry or sector of the economy is output least likely to be affected by the business cycle?
A. Housing construction B. Automobile production C. Agricultural commodities D. Capital goods production