The price elasticity of demand is measured by the
A) percentage change in quantity demanded divided by the percentage change in price.
B) percentage change in price divided by the percentage change in quantity demanded.
C) change in quantity demanded divided by the change in price.
D) change in price divided by the change in quantity demanded.
Answer: A
You might also like to view...
You like bundle A better than bundle B, and bundle C is an average of bundles A and B. Which of the following is correct if your tastes satisfy our usual assumptions?
A. Bundle C is at least as good as bundle B. B. Bundle A is at least as good as bundle C. C. Both (a) and (b). D. None of the above. E. There is not enough information to tell.
What happens in the short run in the Keynesian model to the exchange rate and net exports in each of the following cases?
(a) The foreign real interest rate falls. (b) Foreign output rises. (c) Foreign demand for domestic goods rises. (d) Domestic output rises. (e) The domestic real interest rate falls.
When the U. S. federal government runs a budget deficit, it borrows money by selling:
A. Treasury bills, notes, and bonds. B. publicly owned land. C. its gold reserves. D. financial assets located in foreign banks.
Under NAFTA, environmental standards are
A) harmonized around Mexican rules. B) harmonized around U.S. rules. C) harmonized around Canadian rules. D) harmonized around a combination of the rules in all three countries. E) not harmonized.