Dana is an art historian who needs to travel to Italy to do research. Art historians usually don't have a lot of money, and therefore are very sensitive to price changes. Dana's funding agency pays her a fixed amount to travel. At current exchange rates, Dana can stay in Italy for 35 days. If the exchange rate improves by 10 percent, she can stay for 40 days. What is Dana's price elasticity of
demand for days spent in Italy?
a. It is approximately equal to 2.3.
b. It is approximately equal to 1.6.
c. It is approximately equal to 1.4.
d. It is approximately equal to 0.4.
e. It is approximately equal to 0.1.
c
Economics
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The 2011 U.S. distribution of income shows that the top 5 percent of families earn approximately how much income per year?
a. $170,000 and over b. $205,000 and over c. $250,000 and over d. $325,000 and over
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Economies of scale arise when
a. an economy is self-sufficient in production. b. individuals in a society are self-sufficient. c. fixed costs are large relative to variable costs. d. workers are able to specialize in a particular task.
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