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Author Question: If the price elasticity of demand coefficient equals 2 then: a. a 7 percent decrease in the price ... (Read 116 times)

NguyenJ

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on: Jun 30, 2018
If the price elasticity of demand coefficient equals 2 then:
 a. a 7 percent decrease in the price will result in a 14 percent decrease in the quantity demanded.
  b. a price decrease will increase total revenue.
  c. the good has an inelastic demand.
  d. there is likely few substitutes, a short time period under consideration, or this good accounts for a relatively small percentage of consumers' budgets.

Question 2

If a good has a price elasticity of demand coefficient less than one, then:
 a. this good has an elastic demand.
  b. this good has an inelastic demand.
  c. a 10 percent increase in the price will result in a greater than 10 percent decrease in the quantity demanded.
  d. the demand curve will be vertical.


macmac

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

b

Answer to Question 2

b


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NguyenJ

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Reply #2 on: Jun 30, 2018
Correct answers!


macmac

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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