Larissa Is a Famous Attorney with a Great Reputation in Court

question 280

Multiple Choice

Larissa is a famous attorney with a great reputation in court. She charges her clients $300 for each hour she spends working on their cases. If she earned $450,000 in hourly wages last year, and by raising her rates to $350 per hour her income increased to $490,000 what can we say about the elasticity of demand for Larissa's legal services?

• A) It is approximately equal to 2.3.
• B) It is approximately equal to 1.6.
• C) It is approximately equal to 1.0.
• D) It is approximately equal to 0.45.
• E) It is approximately equal to 0.1.

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Definitions:

Licensed Professionals

Individuals who have met the required standards of qualification, including education and passing of exams, to legally perform certain jobs or tasks.

Court Approval

The official sanction or consent by a judicial body confirming the legality or validity of an action.

Independent Contractors

Individuals or companies hired to perform specific tasks for a business but are not considered employees.

Agents

Individuals or entities authorized to act on behalf of another person or organization in business or legal matters.