A market with demand Q = 100 - 3P is currently in equilibrium with 40 units being sold. It follows that the current price elasticity of demand
a. is zero.
b. is -1.5.
c. is -6.
d. cannot be calculated with the information given.
b. is -1.5.
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A teacher tells her students that she will give them a riddle that each student has to solve separately and then announce his or her answer in the class. Those who get the correct answer will get a gift
Kate, a student in the class, decides to give the answer that most students give, although the answer she gets from solving the riddle is quite different. This is an example of ________. A) adverse selection B) moral hazard C) a pecuniary externality D) an information cascade
The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. If Light-U-Up is unregulated, it will produce ________ and sell at a price of ________
A) 200 kwh; 10¢ per kwh B) 200 kwh; 30¢ per kwh C) 300 kwh; 20¢ per kwh D) 400 kwh; 10¢ per kwh
One of your classmates asserts that advertising, marketing research, and brand management are redundant expenditures because a firm can obtain the same information by simply looking at what customers are already buying
Which of the following is not a response you might offer her? A) If a firm successfully manages its brand, customers become less price sensitive as they perceive fewer substitutes for the firm's brand. B) Advertising and brand management allow a firm to create an entry barrier which will insulate the firm from competition and from undertaking further product innovations. C) Conducting market research is a good way for firms to keep abreast of changing consumer tastes and preferences. D) Marketing research could allow a firm to identify new market opportunities and at least, in the short run, a firm can make a profit supplying products to this market segment.
If each voter pays taxes in proportion to her demand, then _____
a. the median voter's most preferred outcome will definitely occur b. the condition for economic efficiency is satisfied c. special interests will have no power d. political institutions are optimal