If the price elasticity of demand is 0.5, this means that a ________ increase in price causes a ________ decrease in quantity demanded.
A. 20%; 100%
B. 30%; 15%
C. 20%; 1%
D. 5%; 1%
Answer: B
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In an indifference curve/budget line diagram, at your consumer equilibrium, that is, your best affordable point, which of the following statements is CORRECT?
A) Any movement upward or downward on your budget line will move you to a less preferred point. B) Any movement upward or downward on your indifference curve will move you to a less preferred point. C) Your marginal rate of substitution is greater than the magnitude of the budget line by as much as possible. D) All of the above are correct.
________ policies involve government support for manufacturing sectors in which a country has potential comparative advantage
A) Comprehensive development B) Primary-export-led development C) Import-substitution development D) Outward-looking development
Which of the following represents positive economics?
a. Policy A is fair. b. Outcome B is the best objective to achieve. c. If policy A is followed, then outcome B results. d. All of these.
A Major League Baseball player signs a contract that pays $27 million over 5 years. The $27 million is the contract's ________ value.
A. real B. implicit C. external D. nominal