A straight-line demand curve with negative slope intersects the horizontal axis at 100 tons per week. At the midpoint on the demand curve (corresponding to 50 tons per week) the price elasticity of demand is
A) 0.
B) 0.5.
C) 1.0.
D) unknown without more information.
C
You might also like to view...
If a small change in the x variable results in a large change in the y variable, the curve will be
A) positively sloped. B) negatively sloped. C) stee
Every Giffen good is a necessity but not every interior good is a necessity.
Answer the following statement true (T) or false (F)
According to the text, all of the following are reasons for firms to merge except
a. to exercise greater market control b. to increase control over suppliers of their inputs c. to increase control over buyers of their products d. to diversify assets e. to form a cartel
The current exchange rate system for most currencies is described most accurately as one of
a. fixed exchange rates. b. freely flexible exchange rates. c. gold standard rates. d. dirty or managed floating.