The formula for elasticity of demand (in words) is
A. the change in quantity divided by the change in price.
B. the percentage change in quantity divided by the percentage change in price.
C. the percentage change in price divided by the percentage change in quantity.
D. the change in price divided by the change in quantity.
Answer: B
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A decrease in the demand for eggs results in a surplus of eggs at the original equilibrium price. Explain how market forces will act to eliminate the surplus
What will be an ideal response?
Refer to Table 2-1. Assume Dina's Diner only produces sliders and hot wings. A combination of 20 sliders and 60 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
Frieda wishes to buy a house worth $400,000 in the southern part of Florencia. If she decides to save half of her income from now on, which of the following is most likely to be true in this scenario? a. Her consumption function will be flatter
b. Her consumption function will be steeper. c. Her consumption function will shift upward. d. Her consumption function will shift downward.
Which of the following sequences best explains the negative slope of the aggregate-demand curve?
a. price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ? b. price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ? c. price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ? d. price level ? ? equilibrium interest rate ? ? demand for money ? ? quantity of goods and services demanded ?