In calculating price elasticity of demand, which of the following is assumed to be constant?
a. the price of the product itself
b. the quantity demanded of the product
c. total revenue received from the sale of the product
d. the prices of all other products
e. none of the above
D
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"The change in the value of the variable measured on the y-axis divided by the change in the value of the variable measured on the x-axis" is the definition of
A) a trend. B) a graph. C) a relationshi
If a bank receives a $1 million discount loan from the Federal Reserve, then the bank's reserves will
A) not change. B) increase by less than $1 million. C) increase by $1 million. D) increase by more than $1 million.
The infant industry argument is that:
a. those industries that produce products for infants should be protected. b. developing industries should be allowed to face foreign competition. c. protectionism should be used to create a level playing field for the domestic firms to compete with foreign firms. d. protectionism promotes complete specialization in the country on the basis of comparative advantage. e. new industries should be protected from foreign competition until they have had adequate time to develop.
If the Fed sells bonds through its open market operations, then there is
A. an increase in the supply of bonds and a fall in the price of existing bonds. B. a decrease in interest rates because of the increase in the supply of bonds. C. an increase in the demand for bonds and a rise in the price of existing bonds. D. a decrease in interest rates because of the decrease in the demand for bonds.