Price elasticities are calculated for four goods, and the values are: 4.5; 3.7; 1.0; 0.2. Which price elasticity is most elastic?
A) 4.5
B) 3.7
C) 1.0
D) 0.2
Ans: A) 4.5
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In an open economy, the domestic real interest rate is determined by:
A. domestic saving and domestic investment. B. domestic investment. C. domestic saving, domestic investment, and net capital inflows. D. domestic saving and net capital inflows.
A demand curve is also a willingness-and-ability-to-pay curve
Indicate whether the statement is true or false
The way income is allocated among the population is called the
A) income curve. B) income spread. C) distribution of income. D) Gini allocation.
The concept of opportunity cost in a fully employed economy with technology and resources held constant tells us that
a. expansion of output in one industry means expansion cannot occur in another industry. b. expansion of output in one industry means output in another industry must contract. c. output cannot be increased in any industry. d. output of all industries must contract until more resources are found.