Price elasticity of demand is the
A. percentage change in quantity demanded divided by the percentage change in price.
B. change in price divided by the change in quantity.
C. percent change in price divided by the change in quantity.
D. change in quantity divided by the change in price.
Answer: A
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Two important theories of unemployment are
A) game theory and search theory. B) search theory and the efficiency wage theory. C) the efficiency wage theory and the quantity theory. D) the quantity theory and game theory.
The Maastricht Treaty of 1991 provided for all of the following, EXCEPT:
A) an enlargement process to include more European nations. B) a ban on nations opting out of a currency union. C) a rename of the EC to the European Union. D) a notion of EU "citizenship."
Indexing seeks to reduce the social costs of inflation.
Answer the following statement true (T) or false (F)
The Clear Plastic Company's plant discharges large quantities of toxic chemicals into some groundwater sources. Residents in the surrounding area have higher medical bills because of Clear Plastic's pollution. If the firm is forced to pay the social costs of its production
A. the amount of plastic it produces will increase in order to pay the additional costs. B. its supply curve will shift to the right. C. the price it charges for its plastic will decrease. D. it will produce less and charge more for its plastic.