When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price elasticity of demand for this product is
A. perfectly elastic.
B. elastic.
C. inelastic.
D. unit elastic.
Answer: B
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M2 adds together:
A) currency in circulation, checking accounts, savings accounts, travelers' checks, and money market accounts. B) currency in circulation and currency held with foreigners. C) currency in circulation, savings accounts, and held with foreigners. D) currency in circulation, checking accounts, savings accounts, travelers' checks, and currency held with foreigners.
Price discrimination occurs when stores mark down products for sale.
Answer the following statement true (T) or false (F)
Planned investment plus unintended increases in inventories equals:
A. actual investment. B. consumption. C. consumption minus saving. D. unintended saving.
Why don't we see firms tie in the sales of fish filets with the sales of pencils?
A) because the demands for these two goods are positively correlated B) because the demands for these two goods are negatively correlated C) because the demands for these two goods are independent D) It violates the Clean Food Act of 1908.