Suppose a 10 percent increase in the price of textbooks decreases ...

[j.rubin]

Suppose a 10 percent increase in the price of textbooks decreases the quantity demanded by 20 percent. The elasticity of demand for textbooks is
 
  A) 0.2.
  B) 2.0.
  C) 5.0.
  D) 10.0.

Question 2

The above figure reveals
 
  A) no relationship between household income and average household expenditure on automobiles.
  B) that as household income increases the average household expenditure on automobiles decreases.
  C) that as household income increases the average household expenditure on automobiles increases.
  D) all of the above are possible.

[ong527]

Answer to Question 1

B

Answer to Question 2

C

[j.rubin]

Gracias!

[ryansturges]

Excellent