Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price increases from $10 to $12 is
A. -1.37.
B. -0.33.
C. -1.
D. -3.29.
Answer: C
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Stagflation can be defined as a combination of ____.
A. economic migration and inflation B. economic aggregation and deflation C. economic stagnation and inflation D. economic aggregation and inflation
If a perfectly competitive firm's average total cost curve is below its demand schedule at any level of output, then the firm will earn ________ profits.
A. negative B. positive C. break-even D. zero
If product demand increases and product price increases
A. the marginal revenue product curve will shift to the right. B. the firm will move down the marginal revenue product curve and hire more units of the input. C. the marginal revenue product curve will shift to the left. D. the firm will move up the marginal revenue product curve and hire fewer units of the input.
If the price of a normal good falls, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.
A. more; more B. more; less C. less; more D. less; less