An economist estimates that the price elasticity of demand for disposable diapers is 0.67. This suggests that disposable diaper producers could:

A. advertise more to raise the price elasticity of demand.
B. encourage more parents to use cloth diapers.
C. lower the price of disposable diapers to raise more revenue.
D. raise the price of disposable diapers to raise more revenue.


Answer: D

Economics

You might also like to view...

The table above shows the demand and total cost schedule for a monopolist hotel. What price should the monopolist charge if it is a single-price monopoly that maximizes its profit?

A) $171 B) $161 C) $151 D) $141

Economics

The forward exchange market:

a. Is a market for current deliveries but future payments. b. Handles transactions for individuals or companies who would like to lock in now the price of future exchange rate payments or receipts. c. Is a market with no default risk. d. Provides sufficient liquidity for almost any transaction with a maturity up to 5 years and amount up to $1.9 trillion a day. e. Is called "forward" because the dealers are likely to ask you out for a date.

Economics

An insurance company offering discounts to students with high grades in school an example of:

A. statistical discrimination. B. building a reputation. C. signaling. D. screening.

Economics

When banks allow people to make purchases by using a credit card or writing a check, they are providing ______.

a. a dividend b. a medium of exchange c. diversification d. double taxation

Economics