If the price elasticity of demand for good A is -1, then a 1% increase in
A) consumer income will result in a 1% decrease in the demand for good A.
B) consumer income will result in a 1% increase in the demand for good A.
C) the market price of good A will result in a 1% increase in the quantity demanded of good A.
D) the market price of good A will result in a 1% decrease in the quantity demanded of good A.
D
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The market for "lemons" is one in which
a. the rational buyer discounts b. the seller's product claims are unverifiable at the point of purchase c. "the bad apples drive out the good" d. the problem of adverse selection is rampant e. all of the above
The cost of trash removal goes up, in part at least, because labor productivity in auto manufacturing goes up.
Answer the following statement true (T) or false (F)
Economics is a:
a. Managerial science b. Business science c. Social science d. Natural science
Your Uncle Harry gives you stock in Samsung for your birthday. The stock is an example of:
A. foreign direct investment. B. importing. C. foreign portfolio investment. D. exporting.