Author Question: The quantity of new cars increases by 10 percent. If the price elasticity of demand for new cars is ... (Read 45 times)

MirandaLo · **on:** Jun 29, 2018

The quantity of new cars increases by 10 percent. If the price elasticity of demand for new cars is 1.25, the price of new cars will fall by

A) 2.5 percent.
B) 8 percent.
C) 10 percent.
D) 12.5 percent.

Question 2

The existence of economies of scale can create ________.

A) a natural monopoly
B) a government monopoly
C) a legal monopoly
D) a market in which many firms make identical products