The data in the table above give two points on the demand curve for pizza. Using the midpoint method, when the price of a pizza falls from $10 to $9, what is the price elasticity of demand?
A) 0.5
B) 0.6
C) 0.9
D) 2.1
E) 8.6
D
You might also like to view...
Which of the following is true?
i. A price ceiling set below the equilibrium price decreases search activity. ii. A minimum wage is an example of a price ceiling. iii. A price support decreases the quantity consumed. A) only i B) only ii C) only iii D) i and iii E) ii and iii
An interest rate spread is
A) the difference between long-term and short-term interest rates. B) the difference between nominal and real interest rates. C) the difference between lending and borrowing interest rates. D) the difference between public and commercial interest rates.
The big-push strategy is thought to be effective in an LDC because it
a. is financed entirely by the private sector b. does not rely on worker skills and technology c. generates ready markets for each project d. requires only short-term planning e. is managed by international investors
In perfect competition, which is NOT true?
A. Both concentration ratios and Rothschild indexes tend to be close to zero. B. At least one firm has a perceptible impact on the market price. C. There are a large number of firms, and each is small relative to the entire market. D. Firms produce homogeneous goods.