Price of Good X(Px)Quantity of Good X(Qx)Own Price ElasticityTotal Revenue01000.000590-0.11450A80-0.258001570-0.4310502060-0.6712002550C125030B-1.5012003530-2.3310504020-4.00D4510-9.00450500-?0The demand function in the accompanying table is QXd = 100 ? 2PX. Based on this information, compute the own price elasticity of demand when PX = $25 (point C).
A. ?0.25
B. ?0.50
C. ?1
D. ?1.09
Answer: C
You might also like to view...
In investment banking the "spread" is the difference between
A) the value of a firm's assets and the value of its liabilities. B) the bid and asked prices on a bond. C) the price of new capital guaranteed to the issuing firm and the price that can be obtained in the market. D) the price of a new stock issue and the price of an equivalent new bond issue.
The annual membership fees of the 185 member countries of the IMF are called:
a. annuities. b. quotas. c. vetos. d. conditionalities. e. petrodollars.
Suppose that X and Y are substitutes. If the price of Y increases, how will this change the market equilibrium for X?
a. Equilibrium price declines, and equilibrium quantity rises. b. Equilibrium price rises, and equilibrium quantity falls. c. Equilibrium price and quantity both decline. d. Equilibrium price and quantity both rise.
Psychological factors that may influence the saving rate are ________ and ________.
A. capital gains; the real interest rate B. the real interest rate; the demonstration effect C. the desire to leave a bequest; capital gains D. self-control problems; the demonstration effect