To calculate the price elasticity of demand, we divide
A) the percentage change in quantity demanded by the percentage change in price.
B) the percentage change in price by the percentage change in quantity demanded.
C) rise by the run.
D) the average price by the average quantity demanded.
Answer: A
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As more people in a developing country started using debit cards, banks installed more ATM machines, thereby benefitting all customers. This is an example of a(n) ________
A) network externality B) pecuniary externality C) adverse selection D) moral hazard
OPEC has had a sustained effect on the price of oil since it was first founded in 1960
Indicate whether the statement is true or false
Average cost pricing is permitted
A. when a service is produced by a natural monopoly. B. when few firms have the incentive to provide a service. C. in price-taking markets. D. when firms exhibit diseconomies of scale.
An individual faces two alternatives for an investment. Asset 'A' has the following probability of return schedule:Probability of returnReturn (Yield) %.2515.0.2012.0.2010.0.159.0.107.5.100.0Asset 'B' has a certain return of 10.25%. If this individual selects asset 'A' does it imply she is risk averse? Explain.
What will be an ideal response?