If the price of apples decreases by 2 percent and causes apple consumption to increase by 4 percent, the price elasticity of demand is ____, indicating the demand is ____
a. 2; elastic
b. 2; inelastic
c. 0.5; elastic
d. 0.5; inelastic
A
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Briefly define a tariff and a quota. Do any of these methods restrict trade without harming domestic consumers?
What will be an ideal response?
Explain and demonstrate graphically how targeting nonborrowed reserves can result in federal funds rate instability
What will be an ideal response?
In a coin toss bet, where both heads and tails are equally likely, you win a dollar on heads but lose a dollar on tails. The expected value of the bet is
a. $0.50 b. -$0.50 c. $1.00 d. $0.00
Characteristics shared by monopolistically competitive markets and monopoly markets include: a. strategic interactions among sellers
b. many sellers. c. firms facing a downward-sloping demand curve. d. insignificant barriers to entry.