The price elasticity of demand is calculated as the absolute value of 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.
A
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports?
A) Q0 B) Q1 C) Q2 D) Q2 - Q0
Your text mentions several ways that international trade flows are qualitatively different than they were a century ago. Which of the following is NOT one of those ways?
A) Manufactured goods are more important than the were in the past. B) Firms' investment spending on capital goods is more important than in the past. C) International trade in raw commodities and agricultural products is more important than it was in the past. D) It is possible to trade some types of services in a way that was not possible in the past. E) Multinational corporations play a bigger role in production than they did in the past.
An asset market is said to experience a speculative bubble when
a. the price of the asset rises above what appears to be its fundamental value. b. the price of the asset appears to follow a random walk. c. the market cannot establish an equilibrium price for the asset. d. the asset is a natural resource and its supply is manipulated by foreign nations and foreign firms.