Relative percentage changes are used in measuring price elasticity of demand, so that
A) it does not matter whether price increases or decreases when calculating the elasticity.
B) it does not matter what units are used to measure prices or quantities.
C) we always obtain a positive number.
D) larger numbers indicate greater responsiveness.
B
You might also like to view...
Refer to Scenario 1. What is the coefficient of determination?
A) 1.000 B) 0.000 C) 0.037 D) 0.324
If the interest rate rose above the equilibrium rate, people would attempt to __________ bonds. Bond prices would __________ and the interest rate would __________
A) sell; rise; fall B) buy; rise; fall C) sell; fall; rise D) buy; rise; rise
The idea behind a flat tax is to _____
a. cut taxes on high-income taxpayers b. to raise taxes on high-income taxpayers c. increase progressivity d. minimize the excess burden of the income tax
People accept fiat money because: a. they can exchange it for gold whenever they want
b. they can sell the currency notes as a commodity as well. c. the government backs its value with a promise. d. they can consume it as a good if required.