Author Question: Suppose a 10 percent increase in the price of textbooks decreases the quantity demanded by 20 ... (Read 56 times)

j.rubin · **on:** Jun 29, 2018

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.