If the absolute value of the price elasticity of demand for a product is 1.5, and the price of a product increased 30 percent, then the quantity demanded will decline by
A) 45 percent.
B) 20 percent.
C) 5 percent.
D) 10 percent.
Ans: A) 45 percent.
Economics
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The demand curve for labor is the
A) marginal factor cost curve for labor. B) marginal physical product curve for labor. C) marginal physical product curve for labor times the wage rate. D) marginal revenue product curve for labor.
Economics
The kinked demand curve:
a. applies when competitors match price decreases but not price increases. b. could apply to market demand in any market structure. c. applies when competitors match price increases but not price decreases. d. applies to the price leadership model. e. applies when competitors act independently.
Economics