The price elasticity of demand for any particular perfectly competitive firm's output is
A) less than 1.
B) 1.
C) equal to zero.
D) infinite.
D
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If the price of suntan lotion increases from $6 to $8 per bottle and quantity demanded decreases from 900,000 bottles to 845,000 bottles, using the midpoint method, what is the price elasticity of demand for suntan lotion?
What will be an ideal response?
The government imposes a $2.50 per-unit tax on the production of good X. As a result the
A) supply curve for good X shifts leftward and the price of good X rises. B) quantity supplied of good X falls and the price of good X rises. C) demand curve for good X shifts leftward and the price of good X falls. D) supply curve for good X shifts rightward and the price of good X falls. E) supply curve for good X shifts leftward and the price of good X falls.