If a one percent increase in the price of bananas leads to a one percent decrease in the quantity of bananas demanded, then the demand for bananas is
A) elastic.
B) inelastic.
C) unit-elastic.
D) perfectly inelastic.
Answer: C) unit-elastic.
You might also like to view...
Which of the following is the primary source of changes in output within the framework of Keynesian analysis?
a. changes in the price level b. changes in aggregate demand c. changes in interest rates d. changes in wage rates
Amy became a tour guide at a national park and was paid $20 per hour to conduct four two-hour tours per day. Each tour generated $400 in revenues for the park. Which of the following shows the marginal resource cost associated with Amy’s labor?
a. $20 hourly rate b. $360 profit per tour c. $1600 revenues per day d. $800 wages per week
Total consumer surplus in a market is measured as the
A. area bounded below the market clearing price and above the market supply curve. B. horizontal distance from the vertical (price) axis to the equilibrium quantity. C. vertical distance from the horizontal (quantity) axis to the market clearing price. D. area bounded above the market clearing price and beneath the market demand curve.
A firm's marginal revenue product of labor curve is also
A. its labor demand curve. B. its long-run input cost function. C. its total revenue line. D. its marginal cost curve.