Suppose that the percentage change in demand is 20%, the price elasticity of supply is 2, and the percentage change in the equilibrium price is 4%. What is the price elasticity of demand?
A. 0
B. 1
C. 2
D. 3
Answer: D
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Using the above figure, the perfectly competitive firm should shut down if the market price is below
A) P1. B) P2. C) P3. D) P4.
Taxes ____ the incentive to work, since they ____ an individual's after-tax earnings
a. reduce; increase b. increase; reduce c. increase; increase d. reduce; reduce
In the open-economy macroeconomic model, the
a. exchange rate adjusts to equate private saving with the sum of investment, net exports, and net capital outflow. b. exchange rate adjusts to equate national saving with the sum of investment and net capital outflow. c. interest rate adjusts to equate private saving with the sum of investment, net exports, and net capital outflow. d. interest rate adjusts to equate national saving with the sum of investment and net capital outflow.
Refer to the above diagram. The marginal utility of the third unit of X is:
A) 5. B) 4. C) 2. D) 1.