If elasticity of demand is 5 and price is raised from $10 to $11, by what percentage will quantity demanded fall?
What will be an ideal response?
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Which of the following regions had the most impressive growth rate between 1960 and 2011?
A) India B) East Asia C) Latin America D) Sub-Saharan Africa
Price discrimination is based on observable customer characteristics:
A. when a firm can distinguish consumers with a high versus low willingness to pay. B. when a firm offers a menu of alternatives, designed so that different customers will make different choices based on their willingness to pay. C. when a monopolist knows perfectly the customer's willingness to pay for each unit its sells and can charge a different price for each unit. D. in all cases.
What is the profit maximizing price?
A) 10 B) 20 C) 3 D) 40 E) none of the above
The rate of inflation in the United States since 1960 has:
A. declined steadily and predictably from 14% to 1.3%. B. remained below 1.3% as a result of effective Federal Reserve monetary policy. C. increased steadily from 1.3% to 14% and then decreased steadily back to 1.3%. D. fluctuated between 1.3 and 14%, often catching many people by surprise.