Assume that the price elasticity of demand for a commodity is 0.20 . A 10 percent increase in the price of the commodity will be followed by a:
a. 20 percent increase in the quantity demanded.
b. 2 percent decrease in the quantity demanded.
c. 20 percent decrease in the quantity demanded.
d. 0.2 percent decrease in the quantity demanded.
e. 2 percent increase in the quantity demanded.
b
Economics
You might also like to view...
When you borrow stock from a broker and sell it now with plans to buy it back after it drops in price, you are engaging in a
A) margin call B) European option C) American option D) short sale
Economics
Pollution is a form of market failure called a negative externality
a. True b. False
Economics