Which of the following statements about price elasticity of demand is false?
A) The value of the price elasticity of demand along a downward-sloping demand curve is always negative.
B) If quantity demanded changes by a larger percentage than the percentage change in price, demand is elastic.
C) The value of the price elasticity of demand is the reciprocal of the value of the demand curve's slope.
D) A linear downward-sloping demand curve has a varying price elasticity coefficient.
C
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Standardization of derivative contracts
A) increases their liquidity. B) is the rule with respect to contracts whose underlying asset is a financial security, but not for contracts whose underlying asset is a commodity. C) is the rule with respect to contracts whose underlying asset is a commodity, but not for contracts whose underlying asset is a financial asset. D) has been proposed many times by financial analysts, but has not yet been carried out by the SEC.
A key property of a Diamond-Dybvig bank is
A) it is well-diversified. B) it lends to borrowers. C) it provides benefits very different from the provision of insurance. D) it trades with other banks.
According to supply-side economists, the incentive to save during the Clinton Administration fell due to a combination of
a. an increase in net export and a budget surplus. b. an increase in the tax rates on upper-income Americans and more government regulation. c. higher inflation and higher tax rates on lower-income Americans. d. None of the above
A nation's account with the International Monetary Fund is known as
A) a quota subscription. B) monetary deposits. C) monetary rights. D) international reserves.