If the price of Pepsi-Cola increases from 40 cents to 50 cents per bottle and the quantity demanded decreases from 100 bottles to 50 bottles, then according to the averaging equation, the value of price elasticity of demand for Pepsi-Cola is

a. 0.5
b. 0.25
c. 1
d. 3
e. 2


D

Economics

You might also like to view...

Explain the economic concept of price elasticity of supply. How is price elasticity of supply calculated?

What will be an ideal response?

Economics

There is a direct link between a nation's per capita real GDP and its:

a. c and e. b. c, d, and e. c. human capital investment. d. population. e. life expectancy.

Economics

What is the source of market power for a monopolistically competitive firm?

Economics

In which of the following examples should the first country should trade the named product to the second country?

a. Canada can produce lumber products at a lower opportunity cost than the United States. b. The United States can produce cotton fabric more efficiently than India can, but doing so hurts other U.S. industries. c. Italy can produce leather goods more cheaply than Germany can in the absolute sense. d. Russia can produce more oil than Norway, but it incurs higher production costs than Norway does.

Economics