If the price elasticity of demand coefficient equals 2 then:
A. a 7 percent decrease in the price will result in a 14 percent decrease in the quantity demanded.
B. a price decrease will increase total revenue.
C. the good has an inelastic demand.
D. there is likely few substitutes, a short time period under consideration, or this good accounts for a relatively small percentage of consumers' budgets.
Answer: B
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a. $0 b. $6,139.13 c. $10,000 d. $95,632.41 e. $100,000.00
Refer to Figure 8.2. Which graph illustrates an output expansion path with an increasing capital-labor ratio?
A. A
B. B
C. C
D. D
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