The quantity of TVs sold is 100 at the unit price $200. Suppose the price elasticity of demand for TVs by the initial value method is 2.0, and you would like to decrease the unit price for TVs to $150. Then the new quantity sold must be:
A. 125.
B. 150.
C. 200.
D. 250.
Answer: B
You might also like to view...
Which of the following increases the supply of a good?
A) Prices of inputs used to produce the good rise. B) Productivity improves. C) Producers expect higher prices for the good in the future. D) There is a decrease in the price of a complement in production. E) The number of producers decreases.
Suppose a bank has $100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve reduces the required reserve ratio to 8 percent, then the bank can make a maximum loan of
A) $0. B) $2 million. C) $8 million. D) $10 million.
An information is beneficial to the decision-maker only when:
a. its marginal cost is zero. b. its marginal benefits exceeds its marginal cost. c. the possibility of inaccurate transmission is nullified. d. its marginal benefit is positive.
Assuming capital and labor are substitutes, an improvement in technology that affects only the productivity of capital would cause a firm to employ more capital but leave the amount of labor employed unchanged
Indicate whether the statement is true or false