The price elasticity of demand for an agricultural product is 0.4. This value means that, when the quantity decreases 1 percent, the price
A) falls 4 percent.
B) rises 4 percent.
C) falls 2.5 percent.
D) rises 2.5 percent.
E) rises 0.25 percent.
D
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How did the increase in the interest rates in the early 80s contribute to the S&L crisis?
What will be an ideal response?
One interesting feature of federal government spending in the United States is that:
A. it has historically always been greater than the revenues generated. B. little of it is discretionary. C. the majority of it is discretionary. D. it has historically always been less than the revenues generated, until the last 20 years.
The ________ affecting the supply of money is known as monetary policy.
A. Treasury Department B. Commerce Department C. Federal Reserve D. Congress
If consumers suddenly have a greater desire for energy drinks, the price of energy drinks will likely ________ and producers will ________ production
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase