If the absolute price elasticity of demand for automobiles is equal to 0.75, we say
A) that demand is inelastic.
B) that demand is elastic.
C) that there is a strong responsiveness of quantity demanded to automobiles price cuts.
D) none of the above is correct.
A
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Insurance companies charge a lower premium to drivers who carry a higher deductible because
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Under perfect competition and monopolistic competition, profits are zero in long-run equilibrium
a. True b. False Indicate whether the statement is true or false