Refer to the above table. What is the absolute price elasticity of demand when a price rises from $8 to $8.50?
A. 1.94
B. 5.15
C. 0.194
D. 0.515
Answer: A
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The ________ is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100
A) CPI; real GDP; nominal GDP B) PPI; nominal GDP; real GDP C) PPI; real GDP; nominal GDP D) GDP deflator; nominal GDP; real GDP E) GDP deflator; real GDP; nominal GDP
All else constant, if the use of historic costs understates the opportunity costs associated with using a particular piece of capital, accounting profit will be understated
Indicate whether the statement is true or false
A government balanced budget is
A) an excess of government spending over government revenues during a given time period. B) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. C) the total value of all outstanding federal government securities. D) all federal government debt irrespective of who owns it.
Keynesian theory became important when classical economic theory did not adequately explain a prolonged period of:
A. Inflation with low unemployment. B. Inflation with high unemployment. C. Deflation with low unemployment. D. Deflation with high unemployment.