Refer to the graph shown. Calculate the approximate elasticity of demand for the line segment CD:
A. 1/5.
B. 5.
C. 1/3.
D. 3.
Answer: A
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If a 10 percent increase in the price of a luxury hotel room causes the quantity demanded to decrease by 41.5 percent., we can conclude that the price elasticity of demand for luxury hotel rooms is approximately -0.24
Indicate whether the statement is true or false
Which of the following statements is false?
a. Economists look at the factors that lead an individual to decide that a particular idea is in his or her best interest. b. Economists do not ask whether a particular decision is in the individual's best interest. c. Choices must be made because of scarcity. d. A particular choice is made by an individual because that choice provides the greatest satisfaction. e. None of these statements is false, they are all true.
Michael lost his job as a night security guard because he kept falling asleep at the job. Now he is looking for a new job. Michael is
A) frictionally unemployed. B) not unemployed. C) structurally unemployed. D) cyclically unemployed. E) none of the above.
At market equilibrium
A) demand equals supply. B) quantity demanded equals quantity supplied. C) surpluses are greater than shortages. D) shortages are greater than surpluses.