At a price of $10, quantity demanded is 30 units. When the price rises to $11, quantity demanded is 24 units. What is the absolute price elasticity of demand?
A. 0.43
B. 0.5
C. 2.33
D. 6.0
Answer: C
You might also like to view...
The more the short-run output exceeds an economy's potential, _____
a. the smaller the expansionary gap b. the greater the upward pressure on the price level c. the larger the recessionary gap d. the greater the downward pressure on the price level e. the lesser the demand for resources
When price is above the equilibrium level, competitive price cutting will continue as long as quantity supplied exceeds quantity demanded
a. True b. False Indicate whether the statement is true or false
Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1. A Japanese citizen purchasing this machine would pay:
A. 500 yen. B. 5,000 yen. C. 10,000 yen. D. 50,000 yen.
Refer to Figure 13-1. The marginal revenue from the increase in price from P0 to P1 equals
A) the area (A - D). B) the area (B + D - A). C) the area (C - B). D) the area A.