The Elasticity of Demand for Fish Is Estimated to Be

question 215

Multiple Choice

The elasticity of demand for fish is estimated to be 3.If this estimate is accurate,then a 3% rise in price will

• A)increase quantity demanded by 1%.
• B)increase quantity demanded by 9%.
• C)decrease quantity demanded by 1%.
• D)decrease quantity demanded by 3%.
• E)decrease quantity demanded by 9%.

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.), assuming all are efficiently utilized.

Straight Line

A direct path that connects two points and has the shortest distance between them.

Constant Rate

A fixed rate at which something occurs or is applied.

Term Papers

Research papers written by students over an academic term, accounting for a large part of a grade.