If the price of a good decreases by 10% and the quantity demanded increases by 5%, then at that price, the good is
A. perfectly elastic.
B. perfectly inelastic.
C. inelastic.
D. elastic.
Answer: C
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According to your authors, economics
A) alone is not the only, or even the best, perspective to make sense out of the real world. B) can predict real-world phenomena with roughly 85-90% accuracy. C) generates conclusions every reasonable person should accept as true. D) is a false doctrine because individuals have been shown to act non-selfishly.
In the above figure, at the equilibrium price and quantity, consumer surplus is ________
A) $90 B) $60 C) $45 D) $30
Why do professional basketball players earn more than police officers? Illustrate this situation graphically
What will be an ideal response?
In long-run equilibrium in a monopolistically competitive industry, a firm will
A) always earn an economic profit. B) produce an output rate at which P = MC. C) produce at a point to the left of the minimum point on its average total cost curve. D) have a perfectly elastic demand curve.