If the price of coffee increases from $2.50 per cup to $3.00 per cup and the quantity demanded goes down from 120 cups per week to 115 cups per week, the absolute value of price elasticity of demand in that price range is approximately
A) 0.23.
B) 4.35.
C) 0.93.
D) 2.34.
Answer: A
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Explain why a monopolistically competitive firm would not want to reduce its price all the way to its minimum average total cost even though doing so would allow it to increase sales?
What will be an ideal response?
The demand for a subway ride is probably ___________________ than is the demand for a car because ___________________.
A. less price elastic; a subway ride requires a smaller portion of one's income B. more price elastic; a subway ride requires a smaller portion of one's income C. less price elastic; people will take a longer time to adjust to the change in the price of a subway ride D. more price elastic; people will take a longer time to adjust to the change in the price of a subway ride.
How will a decrease in price tend to affect supply? a. Supply will increase
b. Supply will decrease. c. Supply will not change. d. It is uncertain.
Components of economic growth are:
a. physical capital, human capital, and technology. b. physical capital, human capital, and savings. c. education, physical capital, and technology. d. physical capital, working capital, and technology.