If demand elasticity of airline tickets is 3, what percentage change in quantity would the airlines expect from a 10% increase in price?
What will be an ideal response?
A 30% decrease in quantity
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In the long-run equilibrium in a perfectly competitive market, the firms produce at the ________ possible average total cost and the price equals the ________ possible average total cost
A) highest; highest B) lowest; lowest C) highest; lowest D) lowest; highest
Suppose you have put $5,000 into a project that should generate cash inflows of $1,250 for each of the next 5 years. How long will it take to recover your initial investment?
A. 3 years B. 3.5 years C. 4 years D. 4.2 years
Structural unemployment exists because workers and employers try to find the right employment matches.
Answer the following statement true (T) or false (F)
For an economist to say that too much of the good is produced, what must be true?
A. The consumer surplus must be smaller than optimal. B. The consumer surplus plus the producer surplus must be smaller than it could be. C. The producer surplus must be smaller than optimal. D. The consumer surplus must be larger than optimal.