Suppose that the elasticity of demand for newspapers is 2.0 and quantity demanded decreases by 40%. What must the percentage increase in price have been?
A. 2%
B. 20%
C. 80%
D. 200%
Answer: B
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The extra benefit that results from carrying out one additional unit of an activity is the ________ of the activity.
A. average benefit B. marginal benefit C. economic benefit D. total benefit
Private savings is defined as:
a. Y + TR - C - T b. T - G - TR c. Y + TR + C - T d. T + G + TR
A monopolist's marginal revenue curve is
A) the same as a perfectly competitive firm's marginal revenue curve. B) higher than the monopolist's demand curve. C) below the firm's demand curve. D) a horizontal line at the market price.
A monopoly sets a market price that is higher than the marginal cost of production. This fact implies that a monopoly's allocation of resources is:
a. unfair. b. inefficient. c. discriminatory. d. excessive.