At a price of $5, consumers buy 200 units of good X. When the price falls to $4, quantity demanded increases to 250 units. We can conclude that over this range, demand is:
A) elastic.
B) unit elastic.
C) inelastic.
D) perfectly inelastic.
B
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The return to entrepreneurship is known as
A) economic profit. B) normal profit. C) opportunity revenue. D) normal revenue. E) explicit profit.
The relationship in the above figure indicates that
A) a decrease in the interest rate leads to a decrease in household income. B) a decrease in household consumption leads to a decrease in interest rates. C) a decrease in household income will lead household consumption to increase. D) none of the above.
Summarize the relationship between elasticity, price changes, and changes in total revenue
What will be an ideal response?
Often single-owner proprietorships seem more profitable than they really are. The reason for this is that
A) they receive special tax benefits compared to corporations. B) they use different accounting procedures. C) they often fail to consider the opportunity cost of the labor provided by the owner. D) they are not allowed to deduct depreciation expense.