If the price elasticity of demand for a good is 0.3, then a 20 percent decrease in price results in a
a. 0.015 percent increase in the quantity demanded.
b. 0.6 percent increase in the quantity demanded.
c. 6 percent increase in the quantity demanded.
d. 66 percent increase in the quantity demanded.
c
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When we use the midpoint method to compute the price elasticity of demand we use
A) the original quantity and the average price. B) the original price and the average quantity. C) the average price and the average quantity. D) either the original or new price, and the average quantity. E) the average price and the original quantity.
As a person increases his or her caloric intake, the person's weight increases, ceteris paribus. The relationship between the person's caloric intake and the person's weight is an example of
A) unrelated variables. B) a positive relationshi
________ are a form of regional integration where member countries lower internal trade barriers but maintain existing barriers against nonmembers
A) Customs unions B) Free trade areas C) Reciprocal trade agreements D) None of the above.
Which of the following is true for the period from Independence to 1860?
(a) The system of indentured servitude died out because it was seen to be immoral and inconsistent with the Constitution. (b) The system of slavery flourished because the relative price of slaves fell consistently. (c) The system of wage labor flourished as immigrant labor poured into the newly opened western lands. (d) European immigrants typically shunned agricultural labor as their ticket to the good life.