Author Question: If the price elasticity of demand coefficient equals 2 then: a. a 7 percent decrease in the price ... (Read 165 times)

NguyenJ

  • Hero Member
  • *****
  • Posts: 516
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

  • Sr. Member
  • ****
  • Posts: 343
Answer to Question 1

b

Answer to Question 2

b



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

macmac

  • Sr. Member
  • ****
  • Posts: 343

 

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

For a complete list of videos, visit our video library