If price declines from $450 to $350 and, as a result, quantity demanded rises from 1200 to 1500, price elasticity of demand is:
A. 1.78.
B. 0.89.
C. 3.42.
D. 1.12.
Answer: B
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When the economy is at its potential output level, which of the following is true? a. The price level is higher than that expected by workers. b. The nominal wage is equal to the real wage
c. The unemployment rate is about 14 percent. d. The economy is producing its maximum sustainable output. e. The actual price level is less than the expected price level.
An increase in consumers' incomes will have what effect on the equilibrium in the restaurant meals market?
a. Price will increase, and quantity will increase. b. Price will decrease, and quantity will increase. c. Price will increase, and quantity will decrease. d. Price will decrease, and quantity will decrease. e. Price will increase, and quantity will stay the same.
Economic growth can be illustrated by an outward shift of the PPC
a. True b. False Indicate whether the statement is true or false
Refer to the cost table below. Based on the cost data given, which of the following price-quantity tables correctly represents the firm's short-run supply schedule?
A. Table a
B. Table b
C. Table c
D. Table d