Income elasticity of demand is defined as
A) the change in income divided by the change in quantity.
B) the change in price divided by the change in income.
C) the percentage change in demand divided by the percentage change in income.
D) the change in income multiplied by the change in quantity.
C
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A cross-section graph
A) is divided into different sections. B) shows values of an economic variable for different groups in a population at a point in time. C) measures time on the x-axis and the variable in which we are interested on the y-axis. D) Both answers A and C are correct. E) Both answers B and C are correct.
Which of the following statements about the public debt is? true?
A) It is equal to the budget deficit.
B) It decreases when the government runs a budget deficit.
C) It is a stock variable.
D) all of the above
Total revenue is
A. change in price × quantity. B. change in price × change in quantity. C. price × quantity. D. price × change in quantity.
A flour mill holding exclusive contracts to 95% of the wheat in a large geographic area may operate as a flour-producing monopoly locally because
A) the mill has a very inelastic supply curve. B) the mill is a natural monopoly. C) the mill controls a key input. D) the government will declare it a monopoly.