Refer to the above table. What is the absolute price elasticity of demand when a price rises from $9 to $9.50?
A) 0.35
B) 0.55
C) 2.57
D) 2.85
D
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Table 19-1 ? American Coal British Coal Cost per Ton Cost per Ton $150 £75 Assume that the information in Table 19-1 applies to the cost per ton of coal in 1998. Assume that also over a 10-year period prices rise 100 percent in Great Britain and 200 percent in the United States. According to the purchasing power parity theory, the exchange rate between the dollar and the pound in the year 2008 will be
A. 1 dollar = 2 pounds. B. 1 pound = 2 dollars. C. 1 pound = 3 dollars. D. 1 dollar = 3 pounds.
Which of the following is an example of signaling in a market with asymmetric information?
A) Certification of used cars by third parties B) Rent controls imposed by the government C) Discounts offered by sellers during the holiday season D) Taxation of alcoholic beverages
In economic theory, if an additional worker adds less to the total output than previous workers hired, it is because
A) there may be less that this person can do, given the fixed capacity of the firm. B) he/she is less skilled than the previously hired workers. C) everyone is getting in each other's way. D) the firm is experiencing diminishing returns to scale.
Suppose that for a monopolist, MR = MC = $10 and P = $15 at the profit-maximizing level of output. At this level of output, the firm
a. is earning a profit b. will shut down if AVC > $15 c. is making $5 profit on each unit sold d. will shut down if ATC > $15 e. is losing $5 per unit produced