A Firm Is Observed Using 15 Units of Input X

question 190

Multiple Choice

A firm is observed using 15 units of input X when the price of X is $2. If the price of X increases to $4, the firm uses only 6 units of it. What is the price elasticity of demand for input X? (Use the simple formula for percentage change: [(new# −old#) /old#] × 100%.)

• A)1/2 = 0.5
• B)3/5 = 0.6
• C)5/3 = 1.67
• D)2

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Definitions:

PKU

Phenylketonuria is a genetic disorder characterized by an inability of the body to process the amino acid phenylalanine, leading to harmful levels in the blood if left untreated.

Phenylalanine

An essential amino acid that cannot be made by the body and must be obtained from food, important for the biosynthesis of other proteins and molecules.

Essential Amino Acids

Amino acids that cannot be synthesized by the body and must be obtained from the diet, crucial for various bodily functions.

Eugenics Movement

A historical campaign aimed at improving the genetic quality of the human population through selective breeding and, at times, the sterilization of individuals deemed genetically undesirable.