I need help on this Economics. Pls?

Posted on 2013-11-21 18:28:00 in Economics by NIE

1. The quantity of TVs sold is 100 at the unit price $200. Suppose the price elasticity of demand for TVs by the initial value method is 2.0, and you would like to decrease the unit price for TVs to $150. Then the new quantity sold must be __________ .
A. 125

B. 150

C. 200

D. 250

2. If the price elasticity of demand is 2, this means that a __________ increase in price causes a __________ decrease in quantity demanded.
A. 15%; 100%

B. 15%; 10%

C. 20%; 40%

D. 30%; 20%

3. Suppose that in a month the price of tulips increases from $1 to $1.50. At the same time, the quantity of tulips demanded decreases from 200 to 190. The price elasticity of demand for tulips (calculated using the initial value formula) is __________ .
A. 0.1

B. 0.5

C. 10

D. 20

4. At Tony's Restaurant, the quantity of large pizzas sold is 200 at the unit price $15. Suppose the price elasticity of demand for pizzas by the initial value method is 1.5, and you would like to increase the quantity sold to 250. Then the new price must be __________ .
A. $13

B. $12.50

C. $11.50

D. $11.25

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