How do you calculate a percentage change in quantity if given an elasticity of demand and a percentage change in price?
What will be an ideal response?
Since demand elasticity is the absolute value of percentage change in quantity divided by percentage change in price, then percentage change in quantity is equal to elasticity times percentage change in price.
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Refer to Scenario 5.9. Without additional information, Torrid Texts would
A) contract with one paper producer in order to guarantee it avoids the worst outcome, $1 million. B) contract with two paper producers because $60 million is greater than $30 million. C) contract with two paper producers because $61 million is greater than $33 million. D) contract with two paper producers because $45.25 million is greater than $23.25 million. E) not be able to come to any decision on how many producers to contract with.
Many people have heard that the stock market rises when a team from the National Football Conference (NFC) wins the Super Bowl, and falls when a team from the American Football Conference (AFC) is victorious. If you conclude that there is a causal relationship between the outcome of the Super Bowl and stock prices, you probably are: a. confusing correlation with causation
b. committing the fallacy of composition. c. confusing the direction of causality, since everyone knows that stock prices determine which team wins the Super Bowl. d. none of the above
If elected officials prefer policy actions that make benefits available quickly while deferring costs, they will be inclined to favor
A) an easier monetary policy to counter recession. B) increased appropriations to provide jobs for unemployed workers. C) a wage and price freeze to control inflation. D) all of the above. E) none of the above.
One of the surprising conclusions of many of the noncooperative models of oligopoly is that firms end up better off with the noncooperative outcome than they would by cooperating with one another
Indicate whether the statement is true or false