Which statement is true?
A. A perfectly elastic demand curve has an elasticity of zero.
B. Elasticity measures the change in quantity demanded in response to a change in price.
C. Elasticity of demand is found by dividing the percentage change in price by the percentage change in quantity.
D. None of these statements are true.
B. Elasticity measures the change in quantity demanded in response to a change in price.
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What helps to explain the remarkable 7.3% growth rate in South Korea between 1960 and 2011?
A) The education of South Korean women B) A radical reduction in foreign imports and a maximization of South Korean exports C) Huge foreign aid from the World Bank D) All of the above. E) None of the above.
A firm's long-run average cost curve
A) shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed. B) is the sum of all of its short-run average cost curves. C) tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output. D) all of the above
An efficient tax is
A) a tax that raises a maximum amount of revenue. B) a tax that imposes a small excess burden relative to the tax revenue that it raises. C) a tax that imposes an equal tax burden on buyers and sellers. D) a tax that is used to fund research and development of new technology.
Since 1994, trade rules have been enforced by
A) the WTO. B) the G10. C) the GATT. D) The U.S. Congress. E) the European Union.