A 2 percent rise in the price of a good leads to a 10 percent decrease in quantity demanded. The absolute price elasticity of demand is
A) 5.
B) 10.
C) 0.1.
D) 1.0.
A
You might also like to view...
Dumping is
A) international price discrimination. B) international monopolistic pricing. C) collusive behavior among producers in different countries. D) selling goods produced with government approval.
A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 20 ? Q and a 50 percent chance it will be P = 40 ? Q. The marginal cost of the firm is MC = Q. The expected profit-maximizing price is:
A. $20. B. $10. C. $15. D. $5.
Through specialization and international trade, a nation
What will be an ideal response?
The marginal cost of pollution abatement is graphically illustrated by
A. a vertical curve. B. a downward sloping curve. C. a horizontal curve. D. an upward sloping curve.