The above figure shows the demand curve for movie rentals from Redbox. If Redbox raised its price from $2.50 to $3.00, between these two prices the price elasticity of demand equals
A) 1.2.
B) 0.8.
C) 2.0.
D) 0.5.
A
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The theory of rational expectations states that
a. expected inflation will be no different from actual inflation, on average. b. expectations are based on all possible information. c. individuals always act optimally. d. expected inflation will be lower than actual inflation.
Proprietors' income includes all of the following except
a. the income of unincorporated businesses. b. the income of partnerships. c. the income of sole proprietorships. d. the income of all businesses - incorporated and unincorporated .
What is a pure price change?
What will be an ideal response?
An increase in income will tend to cause which of the following?
A) an increase in the monetary base (H) B) a reduction in H C) an increase in the interest rate D) a reduction in the money multiplier E) none of the above