Author Question: The price elasticity of demand for furniture is estimated at 1.3. This value means a one percent ... (Read 101 times)

Awilson837 · **on:** Jun 29, 2018

The price elasticity of demand for furniture is estimated at 1.3. This value means a one percent increase in the

A) price of furniture will increase the quantity of furniture demanded by 1.3 percent.
B) price of furniture will decrease the quantity of furniture demanded by 1.3 percent.
C) quantity of furniture demanded will decrease the price of furniture by 1.3 percent.
D) quantity of furniture demanded will increase the price of furniture by 1.3 percent.

Question 2

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the ________ part of one of the two big economic questions.

A) what
B) why
C) when
D) scarcity