The All Smiles Greeting Card Company wants to increase the quantity of greeting cards it sells by 20%. If the price elasticity of demand is -5.0, the company must
A. decrease price by 0.25%.
B. decrease price by 4.0%.
C. increase price by 4.0%.
D. increase price by 0.25%.
Answer: B
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A) bracelets. B) tiaras. C) both products. D) neither product.
In the extended classical model, an anticipated decrease in the money supply would cause output to ________ and the price level to ________ in the short run
A) increase; decrease B) increase; remain unchanged C) remain unchanged; increase D) remain unchanged; decrease
If new government regulations designed to protect wetlands remove very productive farmland from production, then the production possibilities frontier will shift inward
a. True b. False Indicate whether the statement is true or false
We send more of our exports to _________ than any other country.
Fill in the blank(s) with the appropriate word(s).