"The price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." Is this statement true or false?
What will be an ideal response?
The assertion is true. All elasticities measure the sensitivity, or responsiveness, of some variable to a change in an influence. The price elasticity of demand measures how strongly demanders respond to a change in the price of the good or service.
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The emergence of English as the de facto world language has ________ a comparative advantage in the production of books, movies and popular music:
A. given English-speaking countries B. given all countries C. had no effect on which country has D. given non-English-speaking countries
A firm has an incentive to decrease supply now and increase supply in the future if it expects that
A) the price of its product will be lower in the future than it is today. B) more firms will enter the market in the future. C) the price of its product will be higher in the future than it is today. D) the prices of inputs used to produce the product will rise in the future.
As a fishing firm hires its first, second, and third workers, it could find that marginal product actually rises. The reason for this is
a. diminishing returns have set in b. the division of labor creates greater productivity c. the firm has hired another boat d. all tasks are shared by all workers e. less qualified workers are becoming available
The average fixed cost curve increases as output increases
a. True b. False Indicate whether the statement is true or false