Consider the following data:
Price of A Quantity Demanded of A
$5 6
$4 10

The absolute value of the price elasticity of demand for product A is

A) 0.44.
B) 1.80.
C) 0.56.
D) 2.25.


Answer: D

Economics

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The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's consumer surplus from all 15 sodas is

A) $15.00. B) $22.50. C) $11.25. D) $8.00. E) $1.50.

Economics

The U.S. Postal Service has a monopoly on the delivery of first-class mail due to

a. economies of scale. b. a lack of initiative on the part of competing firms. c. legal barriers limiting entry. d. control over an essential resource.

Economics

If elasticity of demand is 10, a 1% increase in price will lower quantity demanded by

A. .1%. B. 1%. C. 10%. D. 100%.

Economics

Why are water companies considered a natural monopoly?

What will be an ideal response?

Economics