In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $7 to $6 is equal to

A) 2.50.
B) 1.63.
C) 0.40.
D) 0.62.
E) 1.00.

B

Economics

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Which of the following is true?

A) National income = Consumption - Savings + Taxes B) National income = Consumption + Savings + Taxes C) National income = Consumption + Savings - Taxes D) National income = Consumption - Savings - Taxes

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When total revenue minus total cost is equal to zero, the firm is:

a. earning above-average economic profit. b. earning a normal profit. c. losing too much money to stay in business. d. earning abnormally low profits.

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