Suppose the University of Oklahoma increases the price of student football tickets for the 2012 season by 30 percent. If the price elasticity of demand for student tickets is 1.22, the price increase leads to
A) a 36.6 percent decrease in the quantity demanded.
B) a 30 percent decrease in the quantity demanded.
C) a 1.22 percent decrease in the quantity demanded.
D) a 28.78 percent decrease in the quantity demanded.
E) no change in the quantity demanded.
A
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Answer the following statement true (T) or false (F)
1) A firm's optimal amount of R&D occurs where the interest-rate cost of funds and the expected rate of return are equal. 2) Successful new products enable consumers to increase the total utility they obtain from a specific amount of their total spending. 3) Process innovation is represented as a downward shift in a firm's total product curve and its average total cost curve. 4) The theory that R&D expenditures as a percentage of firms' sales first rise, reach a peak, and then fall with increases in industry concentration is called the inverted-U theory of R&D. 5) The process by which new firms and new products destroy existing dominant firms and their products is called creative destruction.
Which of the following can shift the labor demand curve to the right?
A. decrease in product price B. increase in wages C. increase in productivity D. decrease in the marginal product