Use the above figure. When the price increases from $2 to $10, the absolute price elasticity of demand is
A. 1.50.
B. 0.67.
C. 1.00.
D. 0.25.
Answer: D
You might also like to view...
The reduction in transactions costs per dollar of investment as the size of transactions increases is
A) discounting. B) economies of scale. C) economies of trade. D) diversification.
You want to run a difference-in-difference experiment with a price increase for the bacon cheeseburger item on your menu. If you are worried about "leakage" with your control group, a good comparison menu item would be
a. soft drink sales b. the bacon burger without cheese c. the bacon-lettuce-and-tomato sandwich d. the regular cheeseburger
Even though non-union workers maybe just as skilled as union workers, wages are almost 15 percent higher in union jobs. Why?
Most of the time, a profit motive eliminates discriminatory behavior from a market; however, a discriminatory wage gap can persist even if the firm owners only care about profit if there is