If the price elasticity of demand for pineapples is 0.75, then a 4% increase in the price of pineapples will lead to a:
A. 0.75% increase in the quantity of pineapples demanded.
B. 3% decrease in the quantity of pineapples demanded.
C. 0.75% decrease in the quantity of pineapples demanded.
D. 3% increase in the quantity of pineapples demanded.
Answer: B
Economics
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If quantity demanded does not change significantly when price changes, how is demand described?
a. elastic b. inelastic c. perfectly elastic d. unit elastic
Economics
A monopolist has determined that at the current level of output the price elasticity of demand is -0.15. Which of the following statements is true?
A) The firm should cut output. B) This is typical for a monopolist; output should not be altered. C) The firm should increase output. D) None of the above is necessarily correct.
Economics