The price elasticity of demand for flights between RDU and Washington DC is equal to -3. A 20 percent decrease in air fare between RDU and D.C. will therefore result in
A. A 20 percent increase in the quantity of tickets demanded on this route
B. A 30 percent increase in the quantity of tickets demanded on this route
C. A 60 percent increase in the quantity of tickets demanded on this route
D. A 60 percent decrease in the quantity of tickets demanded on this route
Answer: C
Microeconomics
- An increase in the price level may be caused
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- Which of the following statements about the federal budget deficit is true?
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- Suppose the equilibrium GDP is greater than potential real GDP. Which of the following is likely?
- Current equilibrium GDP is less than potential real GDP. According to the classical model of macroeconomic equilibrium, which of the following is true?
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- Which of the following statements is true?
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- A corporation earns $10 million in revenue this year. Accounting costs are $5 million for the year. The corporation owns assets valued at $20 million and has no debts. If the opportunity cost of capital for shareholders of the corporation is 10% it follows that the corporation's economic profit is
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