If the price elasticity of demand for chicken is 2, then a 20% decrease in the price of chicken will lead to a:
A. 10% decrease in the quantity demanded of chicken.
B. 40% decrease in the quantity demanded of chicken.
C. 40% increase in the quantity demanded of chicken.
D. 10% increase in the quantity demanded of chicken.
Answer: C
You might also like to view...
If Bolivia can produce 6 calculators or 3 televisions in a day, and Argentina can produce 4 calculators or 12 televisions in a day, then Bolivia would be willing to trade 1 calculator for 1 television with Argentina
a. True b. False Indicate whether the statement is true or false
An example of splitting up the value chain would be the shipment of
a. refrigerators. b. cellular Phones. c. automotive dashboards. d. automobiles.
Measured in 2014 dollars, real GDP per person in the United States in 2014 was about 10 times that in
a. China. b. India. c. Indonesia. d. Pakistan.
Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run
a. both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with more capital. b. both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with less capital. c. both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital. d. both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.