If the price of a cola increased by 12% and consumers responded by purchasing 20% less cola, the absolute value of price elasticity of demand for cola would be
A) 0.20.
B) 0.80.
C) 1.67.
D) 2.40.
Ans: C) 1.67.
You might also like to view...
In the case of the production of electronic calculators, introduced in the United States in the 1960s,
A. a technological breakthrough reduced the input quantities needed to produce them. B. quantity demanded increased significantly as prices fell. C. production costs fell with advances in technology. D. All of the responses are correct.
Suppose there are 100 firms in a market and all are identical. Firm A will hire 20 workers when the wage rate is $10, 25 workers when the wage rate is $9, and 30 workers when the wage rate is $8
The equilibrium wage rate for a number of years has been $9. If the wage rate falls to $8, we know that A) the quantity demanded for the market will increase to 3,000 workers. B) the quantity demanded for the market will increase to more than 3,000 workers. C) the quantity demanded for the market will increase to less than 3,000 workers. D) the quantity demanded for the market will increase, but we can't tell which of the above answers is correct.
Use the above figure. A leftward shift of the supply curve, ceteris paribus, would result in
A) euro depreciation. B) dollar appreciation. C) dollar depreciation. D) increasing the equilibrium quantity of euros.
What is marginal cost pricing? Why is marginal cost pricing important?
What will be an ideal response?