When the price of a cup of coffee falls from $3.00 to $2.50, the quantity demanded increases from 1,000 per month to 1,150 per month. Using the midpoint method, the price elasticity of demand is
A) 0.77.
B) 1.30.
C) 0.07.
D) 3.00.
E) 2.50.
A
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Real GDP in 2015 is $10 trillion. Between 2015 and 2016, using 2015 prices, GDP grew 3 percent and using 2016 prices real GDP grew 7 percent. Using the chain-weighted output index method, real GDP in 2016 is ________ trillion
A) $10.5 B) $11 C) $10.1 D) $12.72
The opportunity cost of a particular good tends to increase with its rate of output because some resources cannot be easily adapted from the production of one good or service to another
a. True b. False Indicate whether the statement is true or false
If the marginal propensity to consume is 0.6, what is the long-run expenditure multiplier?
a. 0.0 b. 2.0 c. 2.5 d. 10.0 e. 1.0
Economists generally agree that in reducing poverty, policies should be sought that do the
a. greatest good for total production. b. least harm to work incentives. c. most good for the poor. d. least harm to equality of income.