According to Table 2.1, which presents hypothetical data on price elasticity of demand, which of the following is true about lamb?
A. Each 2.7% change in the price of lamb causes a 1% change in the quantity demanded of lamb.
B. The demand for lamb is inelastic.
C. Each 1% change in the price of lamb causes a 2.7% change in the quantity demanded of lamb.
D. Lamb is a normal good.
C. Each 1% change in the price of lamb causes a 2.7% change in the quantity demanded of lamb.
You might also like to view...
The income elasticity of demand for skiing trips to Vermont is greater than one. Thus a trip to Vermont for skiing is ________ good
A) a normal B) an inferior C) a unit elastic D) a price elastic E) a price inelastic
In a prisoner's dilemma, the Nash equilibrium occurs where
A) neither person ends up with their best outcome. B) both end up with their best outcome. C) only one ends up with his best outcome. D) the one who goes first ends up with his best outcome.
Social welfare can be enhanced by allowing firms to trade their rights to pollute
a. True b. False Indicate whether the statement is true or false
Use the above figure. The total revenue earned by the monopolistically competitive firm is
A. $285. B. $180. C. $300. D. $255.