Suppose the demand of city bus tickets has a price elasticity of demand of 1.5. This tells us that: A) If the city increases the price of bus tickets by 10%, the percentage change in the quantity of bus tickets demanded will be less than 15%. B) If the city increases the price of bus tickets by 20%, the percentage change in the quantity of bus tickets demanded will be greater than 15% but less than 30% C) If the city decreases the price of bus tickets by 20%, the percentage change in the quantity of bus tickets demanded will be equal to 30% D) If the city decreases the price of bus tickets then the quantity of bus tickets demanded will also decrease since the price elasticity of demand is a positive number
Suppose the demand of city bus tickets has a price elasticity of demand of 1.5. This tells us that: A) If the city increases the price of bus tickets by 10%, the percentage change in the quantity of bus tickets demanded will be less than 15%. B) If the city increases the price of bus tickets by 20%, the percentage change in the quantity of bus tickets demanded will be greater than 15% but less than 30% C) If the city decreases the price of bus tickets by 20%, the percentage change in the quantity of bus tickets demanded will be equal to 30% D) If the city decreases the price of bus tickets then the quantity of bus tickets demanded will also decrease since the price elasticity of demand is a positive number
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
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Suppose the demand of city bus tickets has a price elasticity of demand of 1.5. This tells us that:
A) If the city increases the price of bus tickets by 10%, the percentage change in the quantity of bus tickets demanded will be less than 15%.
B) If the city increases the price of bus tickets by 20%, the percentage change in the quantity of bus tickets demanded will be greater than 15% but less than 30%
C) If the city decreases the price of bus tickets by 20%, the percentage change in the quantity of bus tickets demanded will be equal to 30%
D) If the city decreases the price of bus tickets then the quantity of bus tickets demanded will also decrease since the price elasticity of demand is a positive number
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