An economist estimates that .67 is the price elasticity of demand ...

[Jipu 123]

An economist estimates that .67 is the price elasticity of demand for disposable diapers. This suggests that disposable diaper producers could:
 a. advertise more to raise the price elasticity of demand.
  b. encourage more parents to use cloth diapers.
  c. lower the price of disposable diapers to raise more revenue.
  d. raise the price of disposable diapers to raise more revenue.
  e. maximize revenues by staying at the current price.

Question 2

If demand for a good is price elastic, then the price elasticity will be:
 a. equal to one.
  b. equal to zero.
  c. greater than one.
  d. less than one.
  e. less than zero.

[leahm14]

Answer to Question 1

d

Answer to Question 2

c

[Jipu 123]

YES! Correct, THANKS for helping me on my review

[jordangronback]

Excellent