If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then the demand for the good is _____
a. inelastic
b. relatively elastic
c. unit-elastic
d. perfectly inelastic
e. income elastic
b
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Which type of firm produces the largest share of manufacturing output?
A) proprietorships only B) partnerships only C) corporations only D) Proprietorships and corporations are tied.
If a firm increases its output in the ________ and unit costs ________, then the firm is experiencing ________ of scale
A) long-run; decrease; economies B) short-run; decrease; economies C) long-run; decrease; diseconomies D) short-run; decrease; diseconomies E) long-run; increase; economies
In the long run when a perfectly competitive firm experiences negative economic profits
A) the high barriers to entry prevent further competition. B) existing firms exit the industry. C) additional firms enter the industry. D) firms have no incentive to exit or enter the industry.
The proposition that an increase in the federal budget deficit caused entirely by a current tax cut has no effect on aggregate demand is called the
A) Ricardian equivalence theorem. B) interest rate effect. C) indirect effect. D) open-economy effect.