Recall the Application regarding the elasticity of demand for public transit varying over time to answer the following question(s).According to the Application, the demand for public transit in the long run is ________, so a 10 percent increase in the transit fare will decrease ridership by ________.
A. 0.80; 8 percent
B. 0.60; 6 percent
C. 0.50; 5 percent
D. 0.7; 7 percent
Answer: A
You might also like to view...
Marginal revenue product for a price taker equals
a. MP ? P b. MP/MRC c. MP ? MRC d. MRC/MP e. MP/P
In some cases, specialization allows larger factories to produce goods at a lower average cost than smaller factories
a. True b. False Indicate whether the statement is true or false
In which of the following situations would the Fed conduct contractionary monetary policy?
A) The Fed is worried that deflation will become a problem. B) The Fed fears that unemployment is climbing above the natural rate. C) The Fed believes that aggregate demand was growing too slowly to keep up with potential GDP. D) The Fed is concerned that aggregate demand would continue to exceed the growth in potential GDP.
An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q. What is average total cost equal to when Q = 10?
What will be an ideal response?