A 4 percent increase in the price of beer will cause a 1 percent decline in the quantity of beer demanded. The demand for beer i
1 answer:
Answer:
The demand for beer is inelastic
Explanation:
Price Elasticity of Demand (PED) is the measure of responsiveness of the demand of a consumer to a product to a change in the price of the product. The formula is percentage change in quantity demanded divided by percentage change in price.
A PED of greater than 1 is elastic, meaning that the demand for a product is sensitive to the very small change in price.
A PED of less than 1 is said to be inelastic, which implies that there is no significant change in the quantity demanded when the price changes. In our example, the PED is inelastic because:
since 0.25 is less than 1, PED is inelastic
Finally, if the ratio of the percentage changes in both quantities demanded and price equals 1, it is said to be unit elastic. This means that there is a proportionate change in quantity demanded with a change in price.
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Answer:
O The size of the labor force is 40 million
Explanation:
Given:
Participation rate is 75%
Unemployment rate is 10%
Employment rate is 67.5%
The number of employed is 27 million.
As the employment rate is 67.5% of the size of the labor force which means that 27 million people are employed, we can say that number of people are employed equals to 67.5 percent of the total size of the labor force and we can write it numerically as:
27 = size of the labor force 67.5%
27 = size of the labor force
27 = size of the labor force
Dividing both side by 0.675
Size of the labor force = 40 million
Therefore, (O The size of the labor force is 40 million) option is correct.