If the elasticity of demand for mothballs is 0.50, then moving along the demand for mothballs:
a. A 20% rise in the price of mothballs will lead to a 10% fall in the quantity of mothballs demanded.
b. A 10% rise in the price of mothballs will lead to a 20% fall in the quantity of mothballs demanded.
c. A 20% rise in the price of mothballs will lead to a 10% rise in the quantity of mothballs demanded.
d. A 10% rise in the price of mothballs will lead to a 20% rise in the quantity of mothballs demanded.
a
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Soldiers in a World War II prisoner-of-war camp
A) used cigarettes as money. B) used cowrie shells as money. C) used U.S. dollars as a commodity money. D) used gold as a fiat money.
Assume that there is a proposed tax cut by the U.S. House of Representatives. A problem is
a. how to distribute the benefits of the total tax cut among different groups within the country. b. that the process occurs very quickly without much time to study any negative effects. c. that tax cuts are harder to implement than tax increases. d. that the Federal Reserve has almost invariably been in favor of moderate tax increases rather than tax cuts. e. this statement is wrong, as tax bills originate in the U.S. Senate.
The unskilled wage rate in a country will probably decline if
A. the demand for unskilled workers increases. B. the aggregate demand for goods and services increases in the country. C. corporate taxes are lowered by the government. D. there's increased immigration of low-skilled workers.
The difference between explicit costs and implicit costs
A. is that explicit costs are short-run costs and implicit costs are long-run costs. B. is that explicit costs involve resources that are purchased and implicit costs involve resources the firm already owns. C. is that explicit costs are opportunity costs while implicit costs are not. D. is that implicit costs are the difference between explicit costs and opportunity costs.