If the Marginal Cost of Brewing Beer Is 40 Cents

question 38

Multiple Choice

If the marginal cost of brewing beer is 40 cents and the profit-maximizing price is 90 cents, then the price elasticity of demand is

• A)-0.66.
• B)-1.8.
• C)-2.
• D)-2.33.
• E)-3.

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Definitions:

Demand for Loanable Funds

The desire for borrowing money, driven by the need for investment funds across the economy.

Quantity of Loanable Funds

This refers to the amount of money available for borrowing in the financial market at a particular rate of interest.

Demand-for-loanable-funds

The desire or need for borrowing money, driven by individuals, businesses, or governments, often influenced by interest rates.

Supply-of-loanable-funds

Supply-of-loanable-funds is an economic concept depicting the amount of capital available for borrowing in the financial markets, influenced by savings and the desire of investors to lend money.