The quantity of new cars increases by 10 percent if

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The quantity of new cars increases by 10 percent. If the price elasticity of demand for newcars is1.25, the price of new cars will fall byA) 8 percent.B) 10 percent.C) 2.5 percent.D) 12.5 percent.
Suppose the price elasticity of demand for oil is 0.1. In order to lower the price of oil by 20percent,the quantity of oil supplied must be increased by
Moving up (to the left) along a linear demand curve, the price elasticity of demand
If the price elasticity of demand for a product equals 1, as its price rises theA rise in the price of a product lowers the total revenue from the product if the
A) good is an inferior product.B) demand for the product is inelastic.C) demand for the product is elastic.D) income elasticity of demand exceeds 1.
If a 4 percent rise in the price of peanut butter lowers the total revenue received by theproducersof peanut butter by 4 percent, the demand for peanut butter
A product is likely to have a price elasticity of demand that exceeds 1 when
Which of the following is likely to have the smallest price elasticity of demand?A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca-Cola by 50
percent.The cross elasticity of demand between a Pepsi and Coca-Cola isA) 5.B) 10.C) 0.20. D) 50.A fall in the price of X from $12 to $8 causes an increase in the quantity of Y demanded
from 900 to1,100 units. What is the cross elasticity of demand between X and Y?
A fall in the price of X from $12 to $8 causes an increase in the quantity of Y demandedfrom 900 to1,100 units. X and Y are
A 10 percent decrease in income decreases the quantity demanded of compact discs by 3percent.The income elasticity of demand for compact discs is
In the figure above, when the price of a disk is $B, total revenue is shown in the graph byareaA) FCDE.B) ADE0.C) AGF0.D) BCF0.The above figure illustrates the demand curve for a good. The good has
The elasticity of demand along the demand curve shown in the above figure is constant andequalto 1. Thus,
The above figure shows a linear (straight-line) demand curve. Start at point A and thenmoving topoint B and then point C, the price elasticity of demand

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Term
Fall
Professor
GOTWALT

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