If the price of a good increases by 15%and the quantity demanded changes by 20%, then the price elasticity of demand is
The university hopes to increase revenue by increasing parking fees. This plan will only work if
The price effect is larger than the quantity effect
the price effect is smaller than the quantity effect
the price effect and quantity effect are the same
For an inferior good, elasticity of demand will be
a demand curve that is perfectly inelastic is
The burden on the tax that is imposed on a good is said to fall completely on the consumers if
price paid by consumers for good declines by the amount of tax
price paid by consumers for good increases by the amount of tax
price paid by consumers does no change
at whatever quantity_________, the decision maker should do________ of the activity
MB<MC, that amount
Use the midpoint method to determine price elasticity of demand if: Price decreases from $2.50 to $2.25 and quantity demand per period increases from 0 to 25.
If these countries used all of their resources, this is the amount of each product they could produce.
Spain: 50 pounds of wheat, 100 toys
America: 25 pounds of wheat, 75 toys
Spain has an absolute advantage in___________ and a comparative advantage in__________. America has the comparative advantage in________.
toys, wheat, toys
toys, toys, toys
wheat and toys, wheat, toys
neither, toys, wheat
Which of the following is true about price elasticity of demand
inelastic demand < 1
elastic demand < 1
unit elastic demand < 1
Increase price will increase revenue if demand is
If a company sold 1,100 units at $0.90 each, what is total revenue?
A luxury tends to be more___________, while necessity is more__________.