Suppose that when the price of donuts rises 10%, the quantity demanded of donuts falls 3%. Based on this information, what is the approximate absolute price elasticity of demand for donuts?
A. 0.3
B. 1.3
C. 30
D. 3.33
Answer: A
You might also like to view...
Refer to the figure below. If the price rises from $10 to $14, what will happen to the price elasticity of supply? 
A. It stays the same. B. It decreases. C. It increases. D. This cannot be determined from the information provided.
With everything else the same, in the foreign exchange market the
A) larger the value of U.S. exports, the greater is the quantity of dollars demanded. B) lower the exchange rate, the smaller the amount of U.S. exports. C) the lower the exchange rate, the smaller is the expected profit from buying dollars. D) the higher the exchange rate, the cheaper are U.S.-produced goods and services.
Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer contracts with suppliers regardless of ISO 900 . status d. Smokers get the worse life insurance rates as non-smokers
The main problem with using desalination to increase water supplies is that
a. There are few available sources b. It is very expensive c. Supplies are usually contaminated with pesticides d. Water tends to evaporate before it can be used e. Communities tend to be located too far from water supplies