In this problem, demonstrate your knowledge of percentage rates of change of an entire demand function (HINT: %?Q = EP•%?P + EY•%?Y). You have found that the price elasticity of motor control devices at Allen-Bradley Corporation is -2, and that the income elasticity is a +1.5 . You have been asked to predict sales of these devices for one year into the future. Economists from the
Conference Board predict that income will be rising 3% over the next year, and AB's management is planning to raise prices 2%. You expect that the number of AB motor control devices sold in one year will:
a. fall .5%.
b. not change.
c. rise 1%r.
d. rise 2%.
e. rise .5%.
e
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Refer to the figure above. If the monopolist faces a constant marginal cost of $10, at what price should it sell its output?
A) $2 B) $10 C) $12 D) $14
An economy's potential level of output can be altered by changes in: a. the actual price level
b. the expected price level. c. aggregate demand. d. real GDP. e. its stock of capital.
When the Fed buys government bonds, bank reserves fall.
a. true b. false
The U.S. Census Bureau estimates that from 2000 to 2009, the net inflow of unauthorized immigrants was about:
A. 100,000 annually. B. 250,000 annually. C. 350,000 annually. D. 700,000 annually.