If the demand for a steak is unit elastic, then
A) the percentage change in quantity demanded is 100 percent greater than the percentage change in price (in absolute value).
B) quantity demanded does not respond to changes in price.
C) the percentage change in quantity demanded is equal to the percentage change in price.
D) the percentage change in quantity demanded is 1 percent greater than the percentage change in price.
C
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All else equal, what is the impact of an increase in the price of feed on fed cattle markets?
A. Decrease in the price and decrease in the quantity of fed cattle. B. Decrease in the price and increase in the quantity of fed cattle. C. Increase in the price and decrease in the quantity of fed cattle. D. Increase in the price and increase in the quantity of fed cattle.
One problem with measuring a durable good's cost is
A) how to allocate the initial purchase cost. B) how to account for depreciation of the good. C) that the good may break before the end of its estimated useful life. D) when to decide to throw it away for a newer model even if the cost has not been accounted for.