The price elasticity of demand is a measure of:
A. the change in quantity demanded of a good that results from a change in its price.
B. the demand for a good.
C. how consumers respond to excess demand.
D. the change in price of a good that results from a change in its quantity demanded.
Answer: A
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Use a figure below to describe the four zones of economic discomfort
What will be an ideal response?
The market supply curve can be derived by
A) vertically adding the individual supplies at each quantity level. B) multiplying the price and quantity supplied at each price level. C) horizontally adding the individual supplies at each price level. D) looking at the capacity utilization in the largest firms in the industry.
When the Fed raises the margin requirement on stock purchases, the price of stocks generally rises
Indicate whether the statement is true or false
If businesses are pessimistic, they are ________.
A. less likely to borrow and invest B. more likely to borrow and invest C. moving down, along the investment demand curve D. moving up, along the investment demand curve