Author Question: Suppose the value of price elasticity of demand for goods manufactured by firms A, B, C, and D are ... (Read 74 times)

roselinechinyere27m

  • Hero Member
  • *****
  • Posts: 557
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

  • Sr. Member
  • ****
  • Posts: 289
Answer to Question 1

e

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

For a complete list of videos, visit our video library