A newspaper recently lowered its price from 50 cents to 30 cents, causing the number of newspapers sold to increase from 240,000 to 280,000. Other things equal, the data imply that the elasticity of demand for this newspaper is about:
A. 0.15.
B. 0.3.
C. 0.5.
D. 3.25.
Answer: B
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If the firms in an industry represented 35%, 25%, 20%, 15%, and 5% of the market's total revenues, respectively, what would be the measure of the Herfindahl-Hirschman Index for this industry?
a. 2,500 b. 3,525 c. 7,725 d. 10,000
Historical note: Andrew Carnegie became an industrial mogul by consuming or buying out his competition in the _________ industry
a. oil b. steel c. rubber d. lumber e. land
The remarkable fact about the structural deficit after 1983 was that it was
a. very high. b. very small for a period of economic recovery. c. very high during peacetime. d. high during Republican administrations.
The time needed for changes in monetary of fiscal policy to affect the economy is called the ________ ________
a. Recognition Lag b. Decision-Making Lag c. Implementation Lag d. Effectiveness Lag