If the price of a good increases by 20% and the quantity demanded changes by 15%, then the price elasticity of demand is equal to:
A) approximately 0.33.
B) approximately 1.33.
C) 1.
D) 0.75.
D) 0.75.
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Answer the next question based on the demand and cost schedules for a monopolistically competitive firm given in the table below.PriceQuantity DemandedTotal CostOutput$201$101182202163293144364125405106426What will be the economic profit or loss for this monopolistically competitive firm at the profit-maximizing level of output?
A. +$20 B. +$10 C. -$15 D. +$28
Which of the following statements is correct?
A) A change in demand or supply can only be caused by a change in price. B) A simultaneous decrease in demand and increase in supply will result in an increase in equilibrium price and uncertain effect on quantity. C) If price is currently above equilibrium, market adjustments will result in a decrease in price and quantity supplied. D) An increase in supply invariably leads to a shortage in the affected market.
Briefly explain how the lower prices of a price ceiling can actually hurt some consumers.
What will be an ideal response?
Who is most likely to benefit when the dollar depreciates against the euro?
A. U.S. buyers of foreign goods B. Foreign savers C. U.S. exporters D. Foreign sellers to U.S. buyers