The elasticity approach to measuring the sensitivity of quantity demanded to changes in price differs from using the slope because the elasticity approach calculates the ratio of the
a. absolute change in price to the absolute change in quantity demanded
b. absolute change in quantity demanded to the percentage change in price
c. absolute change in quantity demanded to the percentage change in price
d. percentage change in quantity demanded to the percentage change in price
e. average change in price to the average change in quantity demanded
D
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The quantity effect of a price reduction causes:
A) a decrease in revenue because of a lower price. B) an increase in revenue because of increased sales. C) an increase in labor demand due to increased sales of the product. D) a decrease in labor demand because of a lower price of the final product.
?In the time series literature, the serial correlation-robust standard errors are sometimes called:
A. ?homoskedasticity and autocorrelation inconsistent standard errors. B. ?homoskedasticity and autocorrelation consistent standard errors. C. ?heteroskedasticity and autocorrelation inconsistent standard errors. D. ?heteroskedasticity and autocorrelation consistent standard errors.
In the last 30 years, the U.S. has become much more __________ on international trade.
Fill in the blank(s) with the appropriate word(s).
Refer to the information provided in Table 19.3 below to answer the question that follows.
Table 19.3 
Refer to Table 19.3. The tax rate structure in this example is
A. proportional. B. progressive. C. regressive. D. marginal.