If the price elasticity of demand for a good is 0.8, then a 12 percent increase in the quantity demanded must be the result of
a. a 0.06 percent decrease in the price.
b. a 1.5 percent decrease in the price.
c. a 9.6 percent decrease in the price.
d. a 15 percent decrease in the price.
d
You might also like to view...
The export supply curve is the portion of the domestic supply curve below the no-trade equilibrium price
a. True b. False Indicate whether the statement is true or false
The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: 
Given the above information, the parameter estimate of a indicates
A. when X is zero, Y is 5.09. B. when Y is zero, X is 8.03. C. when Y is zero, X is -21.36. D. when X is zero, Y is 15.48.
For the cost function C(Q) = 75 + 4Q + 2Q2, the marginal cost of producing 5 units of output is:
A. 4. B. 20. C. 54. D. 24.
Consider the above figure. This curve suggests that as the government continues to raise the tax rate, the revenues that are collected will eventually
A. increase. B. approach infinity. C. decline. D. become negative.