"The slope of the demand curve gives the elasticity of demand." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. The slope gives absolute change in price divided by the absolute change in quantity demanded. Price elasticity of demand is measured using relative changes.
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If the population increases and input prices increase, the equilibrium price of a product will definitely increase
Indicate whether the statement is true or false
Of the following industries, which are perfectly competitive? For those that are not perfectly competitive, explain why
a. Restaurants b. Corn c. College education d. Local radio and television
In the short run, if marginal product is at its maximum, then
A) average variable cost is at its minimum. B) total cost is at its maximum. C) marginal cost is at its minimum. D) average cost is at its minimum.
According to two economists, George Ackerlof and William Dickens, how can cognitive dissonance affect workers' perceptions of their jobs?
A) Cognitive dissonance causes workers to perceive they are victims of discrimination when, in fact, they are not. B) Cognitive dissonance might cause workers to underestimate the true risks of their jobs. C) Cognitive dissonance makes workers believe that measures to improve their health and safety in the workplace are ineffective. D) Cognitive dissonance causes a worker to believe his marginal revenue product is greater than it really is.