Refer to the information provided in Figure 5.3 below to answer the question(s) that follow.
Figure 5.3Refer to Figure 5.3. Using the midpoint formula, if the price of a gardenburger decreases from $7 to $6, the price elasticity of demand equals ________, and the decrease results in a(n) ________ in total revenue.
A. -.13; decrease
B. -13; increase
C. -1.44; increase
D. -.69; increase
Answer: C
You might also like to view...
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the deadweight loss in the market for coal miners due to the monopsony?
A. $250,000 B. $500,000 C. $125,000 D. $750,000
Assume both the demand for bagels and the supply of bagels increase. Which of the following outcomes is certain to occur?
A. The equilibrium price of bagels will rise. B. The equilibrium price of bagels will fall. C. The equilibrium quantity of bagels will rise. D. The equilibrium quantity of bagels will fall.
The branch of economic theory that analyzes decisions about education and training is
A. welfare economics. B. equilibrium analysis. C. human capital theory. D. consumption theory.
The Taylor rule states that if real GDP rises 1 percent above potential GDP the federal funds rate should be raised, relative to the current inflation rate, by ______.
a. 0.5% b. 1% c. 2% d. 4%