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NEW QUESTION: 1
A. Option B
B. Option A
C. Option D
D. Option C
Answer: B
NEW QUESTION: 2
Which component (if any) has only a single instance on the appliance?
A. The application port
B. The console port
C. All components are redundant.
D. The management port
Answer: C
NEW QUESTION: 3
If the price elasticity of demand for a normal good is estimated to be 2.5, a 5% reduction in
its price causes:
A. Total revenue to fall by 5%.
B. Total revenue to fall by 12.5%.
C. Quantity demanded to rise by 12.5%.
D. Quantity demanded to decrease by 5%.
Answer: C
Explanation:
Price elasticity is the percentage change in quantity demanded divided by the percentage change in price. An elasticity of 2.5 means that the change in demand will increase by 250% of any change in price measured in absolute terms (the minus sign is ignored). Hence, a 5% price reduction increases demand by 12.5% (2.5 5%).