The value of the absolute price elasticity of demand for good X is 3. The absolute price elasticity for good Y is 2. Which good's quantity demanded is less responsive to a change in price?
A) Good X
B) Good Y
C) They are equally responsive.
D) Not enough information is given.
Ans: B) Good Y
Economics
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The level of an economic activity should be increased to the point where the ____ is zero
a. marginal cost b. average cost c. net marginal cost d. net marginal benefit e. none of the above
Economics
Refer to the graph below showing the revenue curves for a monopolist. If it wants to sell quantity Q1, it must charge a price:
A. P1
B. P2
C. 0
D. Not labeled on the graph
Economics