Solved

If the Price of a DVD Decreases by 50 Percent

Question 111

Multiple Choice

If the price of a DVD decreases by 50 percent and the quantity of DVDs demanded increases by 75 percent, the price elasticity of demand is _____ and is _____.


A) −1.5; inelastic
B) −1.5; elastic
C) −0.67; elastic
D) −0.67; inelastic

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q106: Economists use the percentage change in quantity

Q107: The demand for a specific brand of

Q108: The price elasticity of demand for eggs

Q109: The demand for shoes is _ price

Q110: Suppose the price elasticity of demand for

Q112: Suppose the price of cereal increases by

Q113: Demand for a good is inelastic if:<br>A)

Q114: Consider the demand curve in the graph

Q115: A decrease in price:<br>A) causes a decrease

Q116: A horizontal demand curve indicates that:<br>A) quantity