Assume the price elasticity of demand for JT Chip Co. chips is 4.0. If the company decreases the price of each bag of chips from $1.89 to $1.49, the number of bags sold will
A. Increase by 78 percent.
B. Increase by 48 percent.
C. Decrease by 78 percent.
D. Increase by 95 percent.
Answer: D
You might also like to view...
Social insurance revenues _____ come from _____
a. primarily; Social Security payroll taxes b. primarily, Medicare taxes c. primarily; Social Security payroll taxes and Medicare taxes d. do not; Social Security payroll taxes
Capital is appropriately classified as a
A. flow. B. process. C. stock. D. growth rate.
Describe in general terms four or five characteristics of less-developed countries
Consider a perfectly competitive firm for which MC equals ATC at the $10 level, and MC equals AVC at the $8 level. If the market price is $7,
a. the firm can earn an economic profit. b. the firm will suffer an economic loss but should operate in the short run. c. the best the firm can do is to break even. d. the firm should shut down in the short run.