The quantity of new cars increases by 10 percent if

The quantity of new cars increases by 10 percent. If the price elasticity of demand for new
cars is1.25, the price of new cars will fall by
A) 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 20
percent,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 the
A 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 the
producers
of 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 is
A) 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 demanded
from 900 to1,100 units. X and Y are
A 10 percent decrease in income decreases the quantity demanded of compact discs by 3
percent.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 by
area
A) 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 and
equalto 1. Thus,
The above figure shows a linear (straight-line) demand curve. Start at point A and then
moving topoint B and then point C, the price elasticity of demand