A value of the absolute price elasticity of demand equal to 0.6 indicates that

A) a 6 percent increase in price leads to a 10 percent decrease in quantity demanded.
B) a 10 percent increase in price leads to a 6 percent decrease in quantity demanded.
C) a 0.6 percent increase in price leads to a 1 percent decrease in quantity demanded.
D) a 1 percent increase in price leads to a 6 percent decrease in quantity demanded.

B

Economics

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Which curve shows the lowest average total cost at which it is possible to produce each output when the firm has time to change both its labor force and plant size?

What will be an ideal response?

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Crude oil can be refined into home heating oil or gasoline. If very cold weather caused the price of home heating oil to increase then, the

A) supply of gasoline would increase. B) demand for gasoline would increase. C) equilibrium price of gasoline would rise. D) Both answers A and C are correct.

Economics