If the percentage change in the quantity demanded of a good is less than the percentage change in price, price elasticity of demand is:
a. inelastic.
b. elastic.
c. unitary elastic.
d. perfectly inelastic.
a
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Economists call the fact that the general public has little incentive to become informed about most political issues _____
a. rational ignorance b. irrational voting c. a diminishing political marketplace d. cyclical political institutions
By increasing transaction speed, electronic trading in stock markets has affected the trade off between size of market—which can reduce the search an investor must make to compare investments—and transaction speed
Indicate whether the statement is true or false
Excess capacity in monopolistically competitive industries results because in equilibrium
A) each firm's output level is too great to minimize average cost. B) each firm's output level is too small to minimize average cost. C) firms make positive economic profit. D) price equals marginal cost.
A shift in aggregate supply is likely to:
a) Reduce the general price level and reduce national income b) Reduce the general price level and increase national income c) Increase the general price level and reduce national income d) Increase the general price level and increase national income