Let Edt= -2. This implies that the demand for movie tickets is
A. elastic, because a 1 percent change in Pt changes Qdt by 2 percent.
B. inelastic, because a 1 percent change in Pt changes Qdt by 2 units.
C. elastic, because a 1 percent change in Pt changes Qdt by 1 percent.
D. inelastic, because a 1 percent change in Pt changes Qdt by 1 percent.
Answer: A
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According to the law of diminishing returns
A) the total product of an input will eventually be negative. B) the total product of an input will eventually decline. C) the marginal product of an input will eventually be negative. D) the marginal product of an input will eventually decline. E) none of the above
All economies in the world have consistently run trade deficits in recent years.
Select whether the statement is true or false. A. True B. False
Suppose the price of a bag of tortilla chips decreases from $3.00 to $2.50 and, as a result, the quantity of tortilla chips demanded increases from 200 bags to 300 bags. Using the midpoint method, the price elasticity of demand for tortilla chips in the given price range is
a. 0.33. b. 0.45. c. 2.20. d. 3.00.
The lowest the poverty rate has been during the last 50 years was in
A. 1960. B. 1967. C. 1973. D. 1979.