Susan's price elasticity of restaurant meals is 2.27. If the price of a restaurant meal falls by 2 percent, the quantity of restaurant meals Susan demands will:
A. increase by 2.27 percent.
B. increase by 22.7 percent.
C. fall by 2.27 percent.
D. increase by 4.54 percent.
Answer: D
You might also like to view...
The ________ rate is the rate at which one currency can be traded for another
A) explicit exchange B) nominal exchange C) expected exchange D) real exchange
Which of the following terms refers to the time it takes to get a fiscal policy bill passed?
a. recognition lag b. implementation lag c. legislative lag d. budgetary lag
Place point Q on the graph to indicate an unemployment rate of 100 percent, point R to indicate full employment and point S to indicate where the United States economy usually operates.
By definition, a progressive tax:
A. Generates greater tax revenues from the poor. B. Imposes a higher tax rate as income increases. C. Imposes a lower tax rate as income increases. D. Implies that the same tax rate is paid at all income levels.