If the price of good A increases from $15 to $20 per unit and quantity demanded falls from 150 to 100 units, then by using the method of average values, we can calculate the absolute price elasticity of demand to be
A. 0.75.
B. 2.4.
C. 2.6.
D. 1.4.
Answer: D
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When the government develops policies to stabilize the economy
A) only expansionary fiscal policy is impacted by the multiplier effect. B) only contractionary fiscal policy is impacted by the multiplier effect. C) these policies are unaffected by the multiplier effect. D) it needs to consider the multiplier effect for all fiscal policies.
Using trade barriers to address labor standards does all of the following EXCEPT it
A) leads to deadweight losses. B) redistributes income. C) works more effectively for countries that are small relative to the total market. D) potentially makes conditions worse as production moves to the informal sector.
The Smoot-Hawley Act:
A. bound the world's nations to a gradual process of tariff reduction. B. established very high tariffs on goods imported to the United States. C. exempted American exporters from the Sherman Antitrust Act. D. established the reciprocal trade agreements program.
The accounting profit of a business firm is also called:
a. royalty income. b. net income from equity. c. compensatory income. d. windfall gain. e. net operating income.