In the figure above, what is the point price elasticity of demand when price is $40?
A. -1.50
B. -0.50
C. -1.00
D. -0.75
E. -2.00
Answer: B
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In a perfectly competitive market that is in long-run equilibrium, a rightward shift in the market demand curve results in
A) the price falling in the short run. B) the firms' economic profits falling in the short run. C) firms leaving the industry in the long run. D) none of the events listed above.
A bed of oysters is not an example of a factor of production but the shucked oysters used to make oyster stew are a factor of production
Indicate whether the statement is true or false
While some supporters of the balanced budget amendment argue that governments should balance their budgets just like households do, which of the following is a valid argument against a balanced government budget?
a. The government has macroeconomic responsibilities. b. The government has microeconomic responsibilities. c. The government is larger than a household. d. Households depend on the government.
Describe what will happen to an economy in which the money supply consists of gold coins when a major new source of cheap gold is discovered