If the price of cheese falls by 1 percent and the quantity demanded rises by 3 percent, then the price elasticity of demand for cheese is equal to:
A. 0.333.
B. 0.30.
C. 30.
D. 3.
Answer: D
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A trade-off between unemployment and inflation is reflected in the
A) economic stability. B) nonaccelerating inflation rate of unemployment (NAIRU). C) natural rate of unemployment. D) Phillips Curve.
Before the creation of the European Economic Community, there was the
A) European Economic Union. B) European Coal and Steel Community. C) European Union. D) European Free Trade Area. E) Single European Community.
Expenditure and tax multipliers are likely to be large
A) if the economy is experiencing deflation. B) when real interest rates rise rapidly. C) during severe recessions. D) if the economy has negative cyclical unemployment.
If a firm faces a price of $12 regardless of how many units it produces and the marginal cost is constant at $10 regardless of how many units it produces, then theoretically, the firm should never stop producing
Indicate whether the statement is true or false