If the price elasticity of demand for a good is 1.4, then a 14 percent increase in the quantity demanded must be the result of
a. a 0.1 percent decrease in the price.
b. a 1 percent decrease in the price.
c. a 10 percent decrease in the price.
d. a 19.6 percent decrease in the price.
c
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The formula is the
A) actual change in the money supply. B) discount rate. C) potential money multiplier. D) federal funds rate.
Warranties in the used car market ________ the problem of private information thereby causing the price of good and bad used cars to ________
A) reduce; be the same B) reduce; differ C) magnify; be the same D) magnify; differ
In the prisoner's dilemma,
a. the prisoners easily collude in order to achieve the best possible payoff for both b. only one player has a dominant strategy c. each player has a dominant strategy d. playing the dominant strategy leads to a better payoff for one prisoner than if the two jointly selected a strategy e. playing the dominant strategy leads to a better payoff for both prisoners than if the two jointly selected a strategy
In the fractional reserve banking system
A. only a fraction of bank assets at any one time may be used to create money. B. only a fraction of a bank's liabilities must be held as reserves to meet withdrawals at any one time. C. a bank receives only a fraction of the reserve it needs at any given time. D. All of the choices are correct.