Exhibit 5-1 Demand curve
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If demand price elasticity is 2, consumers would:
A. buy twice as much of the product in response to a 10 percent decrease in prie.
B. require a 2 percent drop in price to increase their purchases by 1 percent.
C. buy 2 percent more of the product in response to a 1 percent decrease in price.
D. buy twice as much of the product in response to a 1 percent decrease in price.
Answer: C
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Indicate whether the statement is true or false
Since the 1940's U.S. union membership has
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