If the demand curve for X has twice the elasticity of the demand curve for Y, then for the same percentage decrease in price, the percentage increase in the quantity of X demanded would be twice that for Y
a. True
b. False
Indicate whether the statement is true or false
True
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What will happen to the equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties, and fewer used textbooks are sold?
a. Price will rise. b. Price will fall. c. Price will stay exactly the same. d. The price change will be ambiguous.
The difference between quantity restrictions and price ceilings as to their effect on the market is that
A. while price ceilings are efficient, quantity restrictions are not. B. while some consumers gain from price ceilings, no consumers gain from quantity restrictions. C. only quantity restrictions make the market inefficient. D. only price ceilings make the market inefficient.