If the price elasticity of demand for a good is 0.5, then a 5 percent increase in price results in a
a. 0.1 percent decrease in the quantity demanded.
b. 1 percent decrease in the quantity demanded.
c. 2.5 percent decrease in the quantity demanded.
d. 10 percent decrease in the quantity demanded.
c
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Which of the following statements is true when the consumer is in utility-maximizing equilibrium?
A) The number of units of each good purchased is equal. B) The prices of the goods in question must be equal. C) The total benefits the consumer receives from every good consumed must be the same for all goods. D) The rate at which the consumer is willing to trade one good for another is equal to the ratio of their market prices.
If the interest rate is 5%, what is the present value of a security that pays you $1, 050 next year and $1,102.50 two years from now? If this security sold for $2200, is the yield to maturity greater or less than 5%? Why?
What will be an ideal response?
If you pay a parking fee that lets you park at your job for free every day, its average cost per day is irrelevant to your decision whether to part at your job on a given day of the year
a. True b. False Indicate whether the statement is true or false
The Gini coefficient is 0.27 for Japan and 0.45 for the U.S. This means that Japan
a. is not growing as fast as the U.S. b. is growing faster than the U.S. c. has a smaller population income ratio than the U.S. d. has a larger population income ratio than the U.S. e. has a more equal distribution of income than the U.S.