The owner of a local pretzel cart has estimated that if he lowers the price of pretzels from $4.00 to $3.00, he will increase sales from 800 to 1,100 pretzels per day. Using the midpoint formula, the demand for pretzels is
A. elastic.
B. unit elastic.
C. inelastic.
D. perfectly elastic.
Answer: A
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National health insurance programs:
A. can increase use of health clinics versus traditional village doctors, who often have no medical training. B. are usually too costly for developing nations to implement. C. have solved the problem of providing high-quality care in places like India. D. are always less efficient than privatized programs.
If one country can produce a good with fewer resources than another country, this is called:
a. absolute advantage. b. geographic advantage. c. specialization. d. comparative advantage.
Extreme monetarists assert that changes in the money supply
A. Affect prices and the unemployment rate. B. Can affect only real GDP. C. Can affect only the price level. D. Affect prices and real GDP.
The interest on loans paid by businesses is called
A. retained earnings. B. net factor payments. C. net interest. D. depreciation.