If the price elasticity of demand for a product is equal

Assignment Help Business Economics
Reference no: EM13896893

If the price elasticity of demand for a product is equal to 4, a 1 percent increase in price of the product will cause the quantity demanded to _____ by _____ percent.

a. decrease; 25

b. increase; 4

c. decrease; 0.25

d. decrease; 4

e. increase; 0.25

Reference no: EM13896893

Questions Cloud

Aggregate demand is excessive and is causing inflation : If the government decides that aggregate demand is excessive and is causing inflation, what options are open to it? What if the government decides that aggregate demand is too weak instead?
What is the growth rate of real GDP per capita : Suppose an economy's real GDP is $50,000 in year 1 and $53,500 in year 2. What is the growth rate of its real GDP between year 1 and year 2? Assume that population is 100 in year 1 and 103 in year 2. What is the growth rate of real GDP per capita?
What are the four market types : What are the four market types? Give an illustration of each. From a social standpoint, what is the problem with monopoly? Discuss this using an example for illustration.
Explore the legal rights and responsibilities of the tenant : Explore the legal rights and responsibilities of the tenant and the landlord
If the price elasticity of demand for a product is equal : If the price elasticity of demand for a product is equal to 4, a 1 percent increase in price of the product will cause the quantity demanded to _____ by _____ percent.
How much profit do they make at this level of production : A monopolist faces the inverse demand curve: p(Q)=100-4q and a cost structure of: C(q)=q^(2) + 10q What is the profit maximizing amount of output for the firm and how much profit do they make at this level of production?
What themes are present in anna and the tropics : What themes are present in Anna and the Tropics? How do you plan to highlight those themes? What is the mood/atmosphere of this piece? How do you plan to create that mood/atmosphere
Describe the four major purposes of research : Describe the four major purposes of research. Through this, you will show your understanding of the various types of social-science research by defining and describing each of the following four main research purposes:-  Exploratory
Describes femas mission and goals : She has requested an information paper that identifies the director and assistant director and that describes FEMA''s mission, goals, objectives, primary departments, and key activities.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd