Price elasticity of demand is the responsiveness of
A. demand for a good to a change in the demand for another good.
B. demand to a change in income.
C. the quantity demanded to a change in price.
D. demand to a change in supply.
Answer: C
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Refer to the table above. Based on this information, we can conclude that Laborland has a ________
A) current account surplus B) current account deficit C) trade surplus D) budget deficit
List the economic functions of governments
What will be an ideal response?
Suppose that a government agency is trying to decide between two pollution reduction policy options. Under the permit option, 100 pollution permits would be sold, each allowing emission of one unit of pollution. Firms would be forced to shut down if they produced any units of pollution for which they did not hold a permit. Under the pollution tax option, firms would be taxed $250 for each unit of pollution emitted. The regulated firms all currently pollute and face varying costs of pollution reduction, though all face increasing marginal costs of pollution reduction. Because firms face increasing marginal costs to reduce pollution, the demand curve for pollution permits will be:
A. perfectly elastic. B. perfectly inelastic. C. downward sloping. D. upward sloping.
A rightward shift of the market demand curve for drones, ceteris paribus, causes equilibrium
A. Price to increase and equilibrium quantity to increase. B. Price to decrease and equilibrium quantity to decrease. C. Price to increase and equilibrium quantity to decrease. D. Price to decrease and equilibrium quantity to increase.