Suppose the demand function for a good is expressed as Q = 100 - 4p. If the good currently sells for $10, then the price elasticity of demand equals
A) -1.5.
B) -0.67.
C) -4.
D) -2.5.
B
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Subjective evaluations
A) lend themselves to easy measurement. B) are objective in nature. C) are directly measured by productivity. D) are based on opinion.
Total fixed cost for a firm is €25. The variable cost to the firm to produce 1 unit is €10. The marginal cost of producing the first unit is:
(a) €10. (b) €15. (c) €25. (d) €35.
The amount of money in the United States is determined by:
A. the public. B. the Federal Reserve. C. the combined behavior of commercial banks and the public, as well as actions of the Federal Reserve. D. the combined behavior of commercial banks and the public.
Suppose that the supply of gasoline increases. Price will ________ and consumer surplus will ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease