A firm can sell 10 units if the price is $100 and can sell 8 units if the price is $125. Using the midpoint method, what is the price elasticity of demand?
A) 0.75
B) 1.00
C) 1.25
D) 0.50
E) 0.0
B
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Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts less than the demand curve. As a result
A) both the equilibrium price and quantity of MP3 players will decrease. B) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease. C) both the equilibrium price and quantity of MP3 players will increase. D) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease.
Mergers often do not lead to value creation
Indicate whether the statement is true or false
The present value of $100 to be received in a year is
A) less than $100 and falls as the interest rate rises. B) less than $100 and rises as the interest rate rises. C) more than $100 and falls as the interest rate rises. D) more than $100 and rises as the interest rate rises.
Rich country to poor country migration is relatively uncommon
Indicate whether the statement is true or false