If a specific segment of a demand curve is price elastic, then we know that anywhere along that segment, the
a. percentage change in the quantity demanded exceeds one
b. percentage change in quantity demanded exceeds the percentage change in price
c. percentage change in price exceeds the percentage change in quantity demanded
d. the change in quantity demanded exceeds the change in price
e. the good has no close substitutes
B
You might also like to view...
The ________ of the term structure states the following: the interest rate on a long-term bond will equal an average of short-term interest rates expected to occur over the life of the long-term bond plus a term premium that responds to supply and
demand conditions for that bond. A) segmented markets theory B) expectations theory C) liquidity premium theory D) separable markets theory
Which of the following provides the best explanation of why money is valuable?
a. Money is valuable because it is declared legal tender by the government issuing it. b. Money is valuable because it is scarce relative to the demand for the services it provides. c. Money is valuable because it is backed by precious metals, primarily gold and silver. d. Money is valuable because it has intrinsic value, independent of its use as a means of exchange.
The market for corn in Kansas is considered to be competitive. This means there are ________ buyers and ________ sellers of corn in Kansas.
Fill in the blank(s) with the appropriate word(s).
A comparison of the average growth rates across time for developed nations indicates that:
A. nations with lower levels of income grow more slowly than those with higher levels of income. B. nations with lower levels of income will never be as rich as nations with high levels of income. C. nations with high levels of income experience a continuously increasing growth rate. D. nations with lower levels of income grow more quickly than those with higher levels of income.