When the price of hot dogs is $1.50 each, 500 hot dogs are sold every day. After the price falls to $1.35 each, 510 hot dogs are sold every day. At the original price, what is the price elasticity of demand for hot dogs?
A. 0.2
B. 2
C. 5
D. 66.67
Answer: A
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The substitution of machines for labor
A) does not reduce employment opportunities because labor is required to produce the machines. B) is not likely to reduce employment opportunities because as many or more workers will usually be demanded to produce, service, and operate the machines. C) will proceed more rapidly in a society the more rapidly the cost of hiring workers rises. D) will reduce employment opportunities if increased competition associated with the introduction of machinery lowers product prices.
Refer to Figure 14.1. Other things equal, a decrease in taxes is best represented as a movement from
A) point Y to point Z. B) point Z to point X. C) point Z to point Y. D) point Y to point X.
The real business cycle theory is most closely related to
a. Keynesian theory. b. monetarist theory. c. the classical model. d. the new Keynesian model.
The U.S. has a system of private property rights that encourages productive uses of its resources even in the presence of some government influence
Indicate whether the statement is true or false