The price elasticity of demand coefficient for gourmet coffee is estimated to be equal to 1.6 . It is expected, therefore, that a 10% increase in price would lead to:
a. a 16% decrease in the quantity of gourmet coffee demanded.
b. a 16% increase in the quantity of gourmet coffee demanded.
c. an 8% decrease in the quantity of gourmet coffee demanded.
d. an 8% increase in the quantity of gourmet coffee demanded.
a
Economics
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What does marginal cost equal?
a. total output divided by the change in total cost b. total cost divided by quantity of output produced c. the change of total cost divided by the change of output d. average cost divided by output
Economics
In the Solow growth model, given the values of A, s, n, and d, the economy has an equilibrium growth rate of real GDP equal to
A) s. B) n. C) n + d. D) n - d. E) s - d.
Economics