If gasoline prices rise by 20% and quantity demanded falls by 5%., then the price elasticity of demand is:
A) .05.
B) .15.
C) .20.
D) .25.
E) .40.
D
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An increase in the corporate profits tax will most likely lead to
a. a decrease in the rental rate of capital in the corporate sector. b. no change in the rental rate of capital in the corporate sector. c. no change in the rental rate of capital in the non-corporate sector. d. an increase in the rental rate of capital in the corporate sector.
An aggregate demand curve indicates the quantities of real GDP demanded at different ______ levels.
a. income b. stock market c. price d. interest rate
A __________ is anything that might make it more difficult for a competitor to enter a market.
A. monopolistic hurdle B. perfect competition C. barrier to entry D. marginal barrier
Assume that capital and labor are complementary inputs. If the firm decreases the amount of capital it employs, this would
A. shift the firm?s MP schedule for labor to the right. B. cause the firm to move down along the MP schedule for labor. C. cause the firm to move up along its MP schedule for labor. D. shift the firm?s MP schedule for labor to the left.