What does elasticity of demand measure?
(A) The amount of time consumers need to change their demand for a good.
(B) A decrease in the quantity demanded.
(C) An increase in the quantity available.
(D) How buyers will cut back or increase their demand when price rises or falls.
Ans: (D) How buyers will cut back or increase their demand when price rises or falls.
You might also like to view...
Market failure occurs when a market fails to maximize net social welfare
a. True b. False Indicate whether the statement is true or false
Which of the following represents a stock's fundamental value?
A) the price the stock would sell at in the midst of a rational bubble B) the price the stock would sell at if the interest rate were zero C) the present value of its expected future dividend payments D) the simple sum of its future dividend payments E) none of the above
An exchange rate appreciation will shift the aggregate demand curve inward.
Answer the following statement true (T) or false (F)
In a decreasing-cost industry, an increase in output will lead to
A) an upward shift in the ATC curve. B) an upward shift in the MC curve. C) a reduction in long-run per-unit costs. D) an increase in long-run per-unit costs.