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Author Question: Suppose the value of price elasticity of demand for goods manufactured by firms A, B, C, and D are ... (Read 72 times)

roselinechinyere27m

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on: Jun 30, 2018
Suppose the value of price elasticity of demand for goods manufactured by firms A, B, C, and D are 0, -0.8, -1, and -1.5 respectively. The demand for the good will be elastic for:
 a. firms A, B, C, and D.
  b. firms B, C, and D.
  c. only firm A.
  d. firms C and D only.
  e. only firm D.

Question 2

If both prices increase by 10 percent and money income remains constant, the budget line for both goods in question will:
 a. become steeper
 b. become flatter
 c. will have the same slope
  d. will become vertical.


miss_1456@hotmail.com

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Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

c


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