Leo's Bakery reduces the price of wheat bread from $3 to $1 and finds that quantity demanded increases from 100 to 122 loaves. Leo calculates that his price elasticity of demand for wheat bread is:
a. 0.
b. 0.2.
c. 1.0.
d. 1.5.
e. 2.0
b
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In all economies, investment spending fluctuates
Indicate whether the statement is true or false
The condition, MRS1,'C' = w ', describes the representative consumer's
A) investment decision. B) consumption - savings decision. C) current period work - leisure decision. D) future period work - leisure decision.
Suppose the supply of non-OPEC oil increases due to new petroleum discoveries in other countries. What happens to the price of oil on the world market?
A) Increases B) Decreases C) Remains the same D) We do not have enough information to answer this question.
The demand for labor is downward sloping because of:
a) Diminishing marginal returns to labor. b) Rising price. c) Falling marginal cost. d) Rising marginal physical product.