The quantity demanded of a good rises from 1000 to 1500 units, when the price falls from €1.50 to €1.00. The Price Elasticity of Demand for this product is approximately;
(a) 0.33.
(b) - 0.33.
(c) 1.5.
(d) -1.5
Answer: (d) -1.5
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Overproduction results in
A) external costs. B) external benefits. C) deadweight loss. D) super-efficiency. E) the marginal benefit of the last unit produced being larger than the marginal cost.
Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000. What is her accounting profit?
A) $12,000 B) $56,000 C) $86,000 D) $98,000
If the inverse demand function for a monopoly's product is p = a - bQ, then the firm's marginal revenue function is
A) a. B) a - (1/2)bQ. C) a - bQ. D) a - 2bQ.
Exchange rates will affect imports and exports, and thus affect aggregate ______ in the economy.
a. production b. sales c. supply d. demand