Suppose we estimate that the demand elasticity for fine leather jackets is -.7 at their current prices. Then we know that:
a. a 1% increase in price reduces quantity sold by .7%.
b. no one wants to buy leather jackets.
c. demand for leather jackets is elastic.
d. a cut in the prices will increase total revenue.
e. leather jackets are luxury items.
a
Economics
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According to this Application, in recent years the European Union has reformed its agriculture policies by reducing or eliminating minimum prices. Ceteris paribus, these policy reforms would ________ excess supply by ________ prices
A) increase; lowering B) increase; raising C) reduce; lowering D) reduce; raising
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If the poverty threshold is set at 50 percent of median income, and if the poverty line is $10,000 . what is median income?
a. $50,000 b. $20,000 c. $10,000 d. $5,000 e. $25,000
Economics