If the value of the price elasticity of demand is 0.2, this means that
a. a 20 percent decrease in price causes a 1 percent increase in quantity demanded
b. a 0.2 percent decrease in price causes a 1 percent increase in quantity demanded
c. a 5 percent decrease in price causes a 1 percent increase in quantity demanded
d. a 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded
e. a 100 percent decrease in price causes a 200 percent increase in quantity demanded
C
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A regional trade agreement involves:
a. Most, if not all, the nations in the world. b. several nations, usually trading partners, with a common agenda or geographically linked. c. nations that agree to trade only with nations in their region. d. a region of the world with not only trade issues but also political cohesiveness.
If the net benefit of Project A is $20 and that of Project B is $15, switching from Project A to Project B:
A) reduces the net benefit by $5. B) increases the net benefit by $5. C) reduces the net benefit by $15. D) increases the net benefit by $15.