Define the price elasticity of demand and show how it is calculated
What will be an ideal response?
The price elasticity of demand is units-free measure of the responsiveness of the quantity demanded of a good to a change in its price when all other influences on buying plans remain the same. It equals the absolute value (or magnitude) of the ratio of the percentage change in the quantity demanded to the percentage change in the price. The percentage change in quantity (price) is measured as the change in quantity (price) divided by the average quantity (price).
You might also like to view...
According to the economic way of thinking, "money" is defined as
A) anything backed by gold. B) anything backed by some other commodity. C) anything used as a general medium of exchange. D) anything the government declares to be legal tender.
An economic system that permits the conduct of business with minimal government intervention
a. free enterprise b. traditional economy c. incentive d. safety net e. socialism
How does the use of money differ from the use of barter in the exchange of goods and services?
Please provide the best answer for the statement.
The amount of money banks can loan out is determined by the discount rate.
Answer the following statement true (T) or false (F)