If the price elasticity of demand for a product is 2.5, then a price increase of 1.5 percent decreases the quantity demanded by
A) 1.55 percent.
B) 3.50 percent.
C) 5.00 percent.
D) 3.75 percent.
E) 1.00 percent.
D
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Compared to workers in richer countries, workers in developing countries have
A. lower productivity and lower wages. B. higher productivity and higher wages. C. higher productivity but lower wages. D. the same productivity but lower wages.
The basic economic problem is essentially one of deciding how to make the best use of:
A. unlimited resources to satisfy limited economic wants. B. limited resources to satisfy limited economic wants. C. unlimited resources to satisfy unlimited economic wants. D. limited resources to satisfy unlimited economic wants.
When the Federal Reserve sells a government security to a commercial bank
A. the cash reserves of the commercial bank decrease. B. the loans of the commercial bank will increase. C. the balance sheet of the commercial bank is thrown off balance. D. the net worth of the commercial bank increases.
Voss Calculator Company has a monopoly on the sale of graphing calculators. If it sells two of these calculators its total revenue is $600, and if it sells three calculators its total revenue is $750. The marginal revenue of the third calculator sold is
A. $50. B. $75. C. $150. D. $250.