Suppose a decrease in supply raises the price from $4.00 to $5.50 and decreases the quantity demanded from 2,000 to 1,500. Using the midpoint method, the elasticity of demand equals

A) 2.10.
B) 1.11.
C) 0.90.
D) 0.72.
E) None of the above answers is correct.


C

Economics

You might also like to view...

An increase in the number of producers of bird seed ________ the supply of bird seed and shifts the supply curve of bird seed ________

A) does not change; rightward B) increases; rightward C) decreases; leftward D) decreases; rightward E) increases; leftward

Economics

Encouraging formation of monopolies provides firms an incentive to:

A) innovate. B) increase social surplus. C) hire less resources in production. D) decrease deadweight loss.

Economics

Which of the following can shift the labor demand curve to the right?

a. Decrease in product price. b. Increase in wages. c. Decrease in wages. d. Decrease in the MP. e. Increase in productivity.

Economics

Productivity in manufacturing sectors has risen faster than in service sectors

a. True b. False Indicate whether the statement is true or false

Economics