The price elasticity of demand measures
A) the responsiveness of quantity demanded to a change in price.
B) the responsiveness of price to a change in competition.
C) the change in quantity demanded due to a change consumer income.
D) the change in price due to a change in demand.
Answer: A
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Dave recently began running his father's farm. Last year he took in $15,000 in sales revenue and paid $10,200 in out-of-pocket costs. He made an economic loss last year:
a. if his implicit costs were $3000. b. if his implicit costs were $4000. c. if his implicit costs were $5000. d. In none of the above cases.
Which of the following results in the superstar effect?
a. An increase in the minimum wage for sports stars b. A decrease in the demand for televisions c. A technological improvement due to which a baseball game can be broadcast across the world d. A rise in the unemployment rate in the service sector of an economy e. A decline in the returns to capital in an economy
The two interconnected concepts that lie at the heart of many financial crises are:
A. rational expectations and leverage. B. irrational expectations and forecasting. C. forecasting and leverage. D. irrational expectations and leverage.
Wages for high-skilled labor have risen more than wages for low-skilled labor even though more people are highly skilled college graduates than ever before. Which of the following explains this?
a. The demand for high-skilled labor has risen alongside the number of college graduates. b. The demand for low-skilled labor has risen while the demand for high-skilled labor remains the same. c. The value of both high-skilled labor and low-skilled labor has risen, but demand for both remains the same. d. The value of low-skilled labor has risen alongside the number of high school graduates.