Suppose a university raises its tuition by 6 percent and as a result the enrollment of students decreases by 3 percent. The absolute value of the price elasticity of demand is
A. 0.5.
B. 8.0.
C. 6.0.
D. 2.0.
Answer: A
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Why is marginal revenue less than price for a monopolist?
What will be an ideal response?
The majority of export in the U.S. come from:
A. consumption goods and automotive vehicles. B. capital goods and industrial supplies. C. capital goods and consumption goods. D. industrial goods and consumption goods.
Which of the following statements is correct?
a. Buyers determine supply, and sellers determine demand. b. Buyers determine demand, and sellers determine supply. c. Buyers determine both demand and supply. d. Sellers determine both demand and supply.
In the long run, a company will stay in business as long as price is:
a) Greater than or equal to marginal costs. b) Greater than or equal to average total costs. c) Equal to variable costs. d) Equal to marginal physical product.