A Firm Is Observed Using 15 Units of Input X

question 139

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:

Ceil

A mathematical function that rounds a number up to the nearest integer.

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A constructor method in object-oriented programming that initializes an object using another object of the same class.

Parameters

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Math Class

A class in programming that provides methods for performing basic numeric operations such as exponentiation, logarithm calculations, and trigonometric functions.