If ice cream has an absolute price elasticity of demand that is greater than 1, then the demand for ice cream is
A. elastic.
B. perfectly inelastic.
C. inelastic.
D. unit elastic.
Answer: A
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A U.S. company is attempting to cut costs by shifting some of its services to Thailand. This process of shifting production of products or services overseas to cut costs often results in
A) lower production quantities of those products or services. B) lower consumer prices on those products or services. C) greater potential for market failure for those products and services. D) greater economic uncertainty in the market for those products and services.
Where Es is the elasticity of supply and Ed is the own price elasticity of demand, the fraction of the tax passed on to consumers in the form of higher prices is
A) Es/(Es-Ed). B) Ed/(Es-Ed). C) Es/(Ed-Es). D) Ed/(Ed-Es). E) Ed/Es.
As per "cash-for-clunkers" program, car buyers who traded a drivable, registered, and insured clunker for a new one with better gas mileage were paid cash
Indicate whether the statement is true or false
Demand Curve
What will be an ideal response?