Multiple Choice
The price of a new toy increases from $5 to $7 and the quantity demanded decreases from 12,000 to 6,000 per month as a result. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:
A) 0.5, indicating relatively elastic demand.
B) 0.5, indicating relatively inelastic demand.
C) 2.0, indicating relatively elastic demand.
D) 2.0, indicating relatively inelastic demand.
Correct Answer:
Verified
Correct Answer:
Verified
Q140: You have been hired by the city
Q141: The more good substitutes there are for
Q142: If the demand curve for a product
Q143: An increase in tax rates on a
Q144: A tax is imposed on wine. Sellers
Q146: A bountiful wheat harvest can be bad
Q147: If the elasticity of supply coefficient for
Q148: If the cross price elasticity of demand
Q149: Chicken and fish are substitutes. Therefore, the
Q150: Suppose the demand for a good is