In general, elasticity is a measure of
a. the extent to which advances in technology are adopted by producers.
b. the extent to which a market is competitive.
c. how firms' profits respond to changes in market prices.
d. how much buyers and sellers respond to changes in market conditions.
d
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A schedule of how much of a good people will purchase for a range of possible prices during a specified time period, other things constant, is the definition of
A) supply. B) demand. C) a purchasing contract. D) an economic market.
If demand is unit elastic, then a 10 percent increase in the price will lead to a 10 percent increase in quantity demanded
a. True b. False Indicate whether the statement is true or false
The demand for movies is unit elastic if
A) a 5 percent decrease in the price leads to an infinite increase in the quantity demanded. B) a 5 percent increase in the price leads to a 5 percent decrease in the quantity demanded. C) any increase in the price leads to a 1 percent decrease in the quantity demanded. D) a 5 percent increase in the price leads to a 5 percent increase in total revenue.
From 1980 to 1992 net national saving in the United States averaged approximately ________ percent of national income
A) 32 B) 18 C) 12 D) 4.7 E) 2.2