Explain the three possible ranges for price elasticity of demand
What will be an ideal response?
If the percentage change in quantity demanded is greater than the percentage change in price, then quantity demanded is very responsive to changes in price, and demand is elastic (Ep > 1 ). If the percentage change in quantity demanded is less than the percentage change in price, then quantity demanded is not very responsive to a price change and demand is inelastic (Ep < 1 ). Demand is unit elastic (Ep = 1 ) if the percentage change in quantity demanded equals the percentage change in price.
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In a Dutch auction, ________ with each bid
A) the price of the good increases B) the price of the good decreases C) the quantity of the good being offered increases D) the quantity of the good being offered decreases
The marginal physical product of labor is
a. the slope of the total output curve at the relevant point. b. the negative of the slope of the total output curve at the relevant point. c. the slope of the line connecting the origin with the relevant point on the total output curve. d. the negative of the slope of the line connecting the origin with the relevant point on the total output curve.
Using Figure 3 below, suppose that the economy was at Y2. This level of GDP would be considered:
A. inflationary.
B. recessionary.
C. a long run level of output.
D. unsustainable over time.
In China
A) wages are beginning to rise, reducing its comparative advantage. B) there is little advantage from scale economies. C) the middle class is not expanding. D) poor coastal areas limit trade.