Last year the price of corn was $3 per bushel and the quantity of corn demanded was 8 million bushels. This year the price of corn is $4 per bushel and the quantity of corn demanded is 7 million bushels
Assuming that the demand curve has not shifted, what is the price elasticity of demand for corn? (Use the midpoint formula.) A) 1
B) 0.47
C) 2.14
D) 0.29
B
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A schedule of amounts of a good that people will purchase at various prices during a specific time period holding other factors constant is
A) a market. B) supply. C) demand. D) the market clearing price.
A bank allows us to diversify risk because it has a:
A. big pool of borrowers and savers, so the risk of repayment is spread among many. B. small amount of borrowers, but many savers, so it can combine savings to make larger loans. C. small amount of borrowers and savers, so it can connect the optimal saver to the best-matched borrower. D. big pool of borrowers, but not many savers, so it can choose the riskiest person to borrow from.