Answer:
The answer is D a larger number of firms will lead to a higher average cost
This is a funny question!
a. texting her mother at home
Answer:
the black market price stays more or less the same in the long run as in the short run.
Explanation:
The black market price may increase or decrease depending on the price elasticity of the goods or services involved, there is no general economic rule that defines how black market equilibrium price reacts to changes in the supply and demand of legal goods and services.
In this specific case, both the demand elasticity and the supply elasticity are elastic, so they basically cancel out or offset each other. The black market supply will decrease the shortage, but it will not be able to satisfy the new quantity demanded completely. Black market apartments have a greater elasticity (steeper curves).
Answer:
-2.33
Explanation:
The computation of the price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)
where,
Change in quantity demanded would be
= Q2 - Q1
= 5,000 - 2,500
= 2,500
And, average of quantity demanded would be
= (5,000 + 2,500) ÷ 2
= 3,750
Change in price would be
= P2 - P1
= $0.45 - $0.60
= -$0.15
And, average of price would be
= ($0.45 + $0.60) ÷ 2
= 0.525
So, after solving this, the price is -2.33