If a 30 percent price increase generates a 20 percent decrease in quantity demanded, then demand is
A) inelastic.
B) elastic.
C) unit elastic.
D) perfectly elastic.
E) perfectly inelastic.
A
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A monopoly arises when there:
a. is a firm desiring to compete in many markets. b. is a firm wanting to maximize profits. c. are barriers to the entry of other firms in the industry. d. is government intervention to establish and enforce a price ceiling.
Which of the following is not an example of derived demand?
a. As more high school graduates go on to college, more professors are hired. b. As consumers buy more computers, they demand more powerful computers as they become available. c. As people let their hair grow longer, fewer people become barbers. d. As people buy more tennis shoes instead of sandals, they buy more shoe laces. e. Increased demand for overnight delivery speeds up orders for new delivery trucks.