When the price of coffee decreases 5%, quantity demanded increases 5%. The price elasticity of demand for coffee is ________ and total revenue from coffee sales will ________.
A. elastic; increase
B. inelastic; decrease
C. unit elastic; not change
D. elastic; decrease
Answer: C
You might also like to view...
Investment is an economic term for the act of increasing the stock of money available for business loans
a. True b. False Indicate whether the statement is true or false
Which of the following supports the argument for hands-on policy?
A. The failure of discretionary policy. B. The theory of rational expectations. C. Greater stability of the economy in the last 40 years. D. The existence of the four obstacles to policy success.
The amount of income that households actually receive before they pay personal income taxes defines
A. disposable personal income (DPI). B. national income (NI). C. personal income (PI). D. net domestic product (NDP).
In 2009, the Social Security System ran a surplus of approximately $137 billion.
Answer the following statement true (T) or false (F)