If the price elasticity of demand for canned soup is estimated at -1.62. What happens to sales revenue if the price of canned soup rises?
A) It falls by 162 percent. B) It rises.
C) It falls. D) It rises by 1.62 percent.
C
You might also like to view...
The majority of spending in the category of government purchases comes from
A) transfer payments. B) the federal government. C) state and local governments. D) military spending.
What is market supply? How is the market supply curve for a good obtained?
Suppose households attempt to decrease their money holdings. To counter this decrease in money demand and stabilize output, the Federal Reserve will
a. increase government spending. b. increase the money supply. c. decrease government spending. d. decrease the money supply.
Game theory:
A. is more flexible than the standard supply/demand model. B. replaces the standard supply/demand model. C. replaces the monopoly model. D. is more restrictive than the standard supply/demand model.