A health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40 . The price elasticity of demand for memberships at this health club is (using the average values method):
a. 0.25.
b. 0.6.
c. 1.0.
d. 1.1.
e. 0.83
e
You might also like to view...
The unemployment rate is found by dividing the number of unemployed people by the
A) number of working individuals, and multiplying by 100. B) number of the working-age population, and multiplying by 100. C) sum of working individuals plus unemployed workers, and multiplying by 100. D) number in the labor force, and dividing by 100.
If a firm shuts down in the short run it will
A) break even. B) suffer a loss equal to its fixed costs. C) declare bankruptcy. D) suffer a loss equal to its variable costs.
In the classical model, a tax on labor supply will
a. decrease the demand for labor, increase the real wage, decrease output, and reduce the price level. b. decrease the supply of labor, increase real wages, decrease output, and increase the price level. c. decrease the demand for labor, the real wage, decrease output, and increase the price level. d. have no effect on the labor market, but reduce output and increase the price level. e. increase both labor demand and supply, which will increase output and the price level.
The International Space Station is a joint project of the United States, Russia, Japan, Canada and the European Union. This suggests that _____
a. if the space station is a public good then the optimal size of the sharing group is larger than one country b. each country would have been unable to raise the money to pay for the space station on their own c. there are significant negative externalities involved that should be spread over more individuals d. Australians do not value space exploration