Refer to the information provided in Figure 5.3 below to answer the question(s) that follow.
Figure 5.3Refer to Figure 5.3. Use the midpoint formula. If the price of a gardenburger increases from $6 to $8, the price elasticity of demand equals ________ and demand is ________.
A. -2.0; elastic
B. -1.75; elastic
C. -0.57; inelastic
D. -1.9; inelastic
Answer: B
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________ is the ability to move to a different part of the income distribution
Fill in the blank(s) with correct word
The best single indicator of a person's purchasing power over time is income
Indicate whether the statement is true or false
An industry comprised of a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called:
A. monopolistic competition. B. oligopoly. C. pure monopoly. D. pure competition.
Relative to a competitive labor market, monopsony
A) is also efficient. B) creates a deadweight loss because it pays an excessive wage. C) creates a deadweight loss because the wage is below the marginal revenue product of labor. D) creates a deadweight loss because the wage is above the marginal revenue product of labor.