"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.
You might also like to view...
There are no arguments in favor of inheritance taxation on efficiency grounds, only on equity grounds
a. True b. False
Suppose an economist uses an econometric model to estimate the demand for peanut butter in the United States. This modeling is an example of
a. economic policy making b. normative economics c. positive economics d. macroeconomic analysis e. descriptive economic analysis
National income minus personal taxes net of transfer payments equals disposable income
a. True b. False Indicate whether the statement is true or false
A consumer price index that has had the impact of having food and energy prices removed is the
A. CPI. B. core CPI. C. PCE. D. Producer Price Index.