Multiple Choice
The state of Massachusetts recently saw an increase in the price of electricity of 10%, which brought about a fall in the quantity of electricity consumed by 2%. The price elasticity of demand is equal to _____, and demand is described as _____.
A) 0.2; inelastic
B) 5; inelastic
C) 0.2; elastic
D) 5; elastic
Correct Answer:
Verified
Correct Answer:
Verified
Q142: If quantity supplied does not respond substantially
Q143: Using the midpoint formula, calculate the
Q144: Taking the absolute value of the cross-price
Q145: Calculate the price elasticity of demand
Q146: The price of a dozen eggs falls
Q148: Two products have a cross-price elasticity of
Q149: (Figure: Supply Curves) The figure shows four
Q150: The price of chicken breast rises from
Q151: (Figure: The Demand Curve for Car Insurance)
Q152: If a consumer has more time to