If the price elasticity of demand for a good is 1, then a 3 percent decrease in price results in a
a. 0.1 percent increase in the quantity demanded.
b. 1 percent increase in the quantity demanded.
c. 3 percent increase in the quantity demanded.
d. 4 percent increase in the quantity demanded.
c
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Which of the following would result from a tariff?
a. An increase in government budget deficit b. An increase in domestic production c. A greater volume of international trade d. Increased domestic consumption e. Decrease in prices of the imported goods
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The marginal cost of the 4th employee is:
A. $11,000. B. $9,500. C. $10,750. D. $13,000.
Discretionary fiscal policy _____
Fill in the blank(s) with the appropriate word(s).
Why is the demand curve horizontal for a perfectly competitive firm?
What will be an ideal response?