Charlie will purchase 10 percent more cans of Coke if the price of a can of Coke falls by 5 percent. Charlie's price elasticity of demand for cans of Coke is:
A. 1/2.
B. 5.
C. 10.
D. 2.
Answer: D
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An American consumer buys a French luxury product in New York. In the U.S. balance of payments accounts, this transaction directly appears in
A) the official settlements account. B) the imports part of the current account. C) the net transfers part of the current account. D) the capital and financial account.
During the financial crisis of 2007-2009 the interest rate spread on mortgage-backed securities over Treasury bills
a. increased tremendously. b. increased moderately. c. decreased moderately. d. decreased tremendously.
Refer to the above figure. Autonomous consumption equals
A. $5000. B. -$5000. C. 0. D. $25,000.
If the demand for agricultural output is highly inelastic, an improvement in the technology used in the agricultural industry most likely will cause a:
A. large drop in the price of agricultural output combined with a large decrease in quantity. B. large drop in the price of agricultural output combined with a small increase in quantity. C. small drop in the price of agricultural output combined with a large increase in quantity. D. small drop in the price of agricultural output combined with a small increase in quantity.