The law of demand states the basic price/quantity relationship of consumption incentives. What does the concept of "price elasticity" add to that knowledge?
What will be an ideal response?
Price elasticity measures the degree of responsiveness of quantity demanded of a good to a 1 percent change in price.
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During 2014, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2013, real GDP was 105 billion and the population was 0.85 billion. In 2014, real GDP per person was
A) $128. B) $124. C) $135. D) $117.
Commodities that typically last three years or more are called:
A) durable goods. B) nondurable goods. C) services. D) none of the above.
Which of the following is not correct?
a. The U.S. economy has never experienced deflation. b. Since 1965, the U.S. nominal interest rate has exceeded the U.S. real interest rate. c. Since 1965, the U.S. economy has experienced rising consumer prices in most years. d. During deflation, the real interest rate exceeds the nominal interest rate.
Karina likes to keep her assets in many forms. She has invested in stocks, purchased some valuable pieces of jewelry, deposited money into a retirement account, and added money to her checking account. Which of Karina’s assets is most liquid?
a. her checking account b. the valuable jewelry c. the stocks d. her retirement account