If textbook prices rise by 5% this year, and textbook purchases fall by 5% this year, then the price elasticity of demand is:

A) .05.
B) .10.
C) .55.
D) .95.
E) 1.0.


E

Economics

You might also like to view...

The number of adults not in the work force of a country equals 6 million and the number of individuals employed is 5 million. If there are 12 million potential adult workers in the economy, what is the current unemployment rate in this country?

A) 21 percent B) 16.67 percent C) 30.55 percent D) 12.45 percent

Economics

For a profit-maximizing monopolistically competitive firm, for the last unit sold, the marginal cost of production is less than the marginal benefit received by a customer from the purchase of that unit

Indicate whether the statement is true or false

Economics

The portion of the four-sector circular flow model which shows the flow of funds from savers to borrowers is the:

a. product market. b. factor market. c. savings market. d. financial market.

Economics

According to the absolute income hypothesis, the marginal propensity to consume

a. decreases as national income increases b. increases as national income increases c. is equal to one d. is constant as national income increases e. is equal to the marginal propensity to save

Economics