Suppose the price elasticity of demand for methamphetamine is -0.35
If decriminalization caused the price of methamphetamine to fall by 75 percent, what will be the percentage increase in the quantity of methamphetamine demanded? If the price elasticity is -3.5, what will be the percentage increase in quantity demanded?
If price elasticity of demand is -0.35, a 75 percent drop in price would increase the quantity demanded by 26.25 percent.
If price elasticity of demand is -3.5, a 75 percent drop in price would increase the quantity demanded by 262.5 percent.
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The branch of economics which studies the behavior of entire economies is called
A) public economics. B) microeconomics. C) macroeconomics. D) normative economics.
Suppose Mary is willing to pay up to $15,000 for a used Ford pick-up truck. If she buys one for $12,000, her ________ would be ________.
A. economic surplus; $12,000 B. cost; $15,000 C. benefit; $12,000 D. economic surplus; $3,000