The price elasticity of demand is defined as the percentage change in price divided by the percentage change in quantity demanded
a. True
b. False
Indicate whether the statement is true or false
False
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Why do people and firms in the United States supply dollars to the foreign exchange market?
What will be an ideal response?
In periods of high inflation, _____
a. people want to hold as much money as possible b. the purchasing power of money decreases c. the real interest rate exceeds the nominal interest rate d. the nominal interest rates are likely to be low e. the nominal interest rate equals the real interest rate
What reasons can you suggest for arguing that the federal government, unlike individuals, need never run a surplus budget?
Exhibit 3-8 Demand and Supply Data for Video Games ? Price Quantity Demanded of Video Games Quantity Supplied of Video Games $75 400 900 70 450 850 65 500 800 60 550 750 55 600 700 50 650 650 45 700 600 40 750 550 ? In Exhibit 3-8, if there is a shortage of video games of 200 units, the current price of video games must be:
A. $60. B. $55. C. $40. D. $45.