When the Price of Bricks Increases 5%,quantity Demanded Decreases 15

question 154

Multiple Choice

When the price of bricks increases 5%,quantity demanded decreases 15%.The elasticity for bricks is:

• A)perfectly inelastic.
• B)elastic.
• C)inelastic.
• D)unitary elastic.

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Definitions:

Profits

The financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.

Economic Rents

Earnings in excess of the minimum amount required to keep a resource in its current use, often due to scarcity or monopolistic control.

Accrue

The accumulation or increase of something over time, especially payments or benefits.

Changes in Rent

Variations in the lease price for rental properties due to factors like market demand, location, and quality of the property.