Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670Using the regular percentage change formula, what is the price elasticity of demand when price decreases from $9 to $7?
A. -1.5
B. -1
C. -1.75
D. -2.25
Answer: D
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After researching the effectiveness of child safety seats in reducing the accident death rate of children ages one to four, economist Steven Levitt found that
A) for children under age four, safety seats are safer than any alternative. B) for children under age two, safety seats are safer than any alternative, but beyond age two, they provide no appreciable benefit over standard car seat belts. C) safety seats are actually more dangerous than standard car seat belts for children of any age. D) safety seats provide no appreciable benefit over standard car seat belts for children of any age.
If the fiscal policy makers aim to increase aggregate demand, they will likely enact:
A. contractionary fiscal policy. B. expansionary fiscal policy. C. contractionary monetary policy. D. expansionary monetary policy.
Structural unemployment is likely to be affected by
A. the amount of the money supply. B. the reservation wage curves of people. C. an economic recession or boom. D. minimum wage laws in the economy.
The type of policy that involves changes in taxes or spending by the federal government is known as:
A) fiscal policy. B) monetary policy. C) strategic financial policy. D) federal policy.