Suppose Qxd = 10,000 ? 2 Px + 3 Py ? 4.5M, where Px = $100, Py = $50, and M = $2,000. What is the own price elasticity of demand?
A. ?1.21
B. ?0.21
C. ?0.78
D. ?2.34
Answer: B
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Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?
A) half a year B) approximately 10 years C) 28.6 years D) 35 years
If the price effect outweighs the quantity effect, then a tax:
A. increase will raise revenue. B. decrease will raise revenue. C. increase will lower revenue. D. increase will not change revenue.
There are at least ______ factors in addition to price that affect demand.
a. three b. four c. five d. two
Which of the following is the best example of a long-run decision?
A. A business consulting firm considering whether to hire some interns to assist with research and data processing. B. A business consulting firm considering whether to add new computers while maintaining the same number of employees. C. An automobile manufacturing company considering whether to expand its existing workforce while keeping the same factory and equipment. D. An automobile manufacturing company considering whether to invest in robotic equipment to develop a more cost-effective production technique.