When the price of running shoes goes from $100 to $80, the quantity demanded increases from 20 to 30 million. Over this price range, the absolute value of the price elasticity of demand is
a. 0.55.
b. 1.
c. 1.25.
d. 1.80.
e. 2.50.
D
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Which of the following is true of a duopoly with differentiated products?
A) A firm loses all its customers when its rival lowers the price of its product. B) A firm does not lose all its customers when its rival lowers the price of its product. C) A firm faces a perfectly elastic demand curve. D) A firm faces a perfectly inelastic demand curve.
Consider the labor market depicted in the above figure. What wage rate must be paid to have the 200th hour of labor supplied?
A) $10 B) $15 C) $20 D) None of the above answers is correct.
The diagram that represents how income is distributed among members of a population is known as a(n):
a. indifference curve. b. Laffer curve. c. Edgeworth box. d. Lorenz curve. e. Phillips curve
Which of the following would be cures for the U.S. trade deficit?
a. Americans saving less and spending more b. a severe recession in Europe and Asia c. a severe recession in the United States d. a tax cut e. All of the above are correct.