Price elasticity of demand measures the
A) slope of the demand curve.
B) sensitivity of quantity demanded to changes in the price of substitute goods.
C) sensitivity of price to changes in the quantity demanded of substitute goods.
D) sensitivity of quantity demanded to changes in price.
D
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The Lorenz curve in the above figure implies that
A) income is equally distributed. B) the lowest fifth of households account for less than 20 percent of income. C) the highest fifth of households account for less than 20 percent of income. D) the lowest fifth of households account for more than 20 percent of income.
If a marginal cost pricing rule is imposed on the natural monopoly in the figure above, then the price will be
A) $2. B) $4. C) $5. D) $6.
The real wealth and the real interest rate effects are both causes of the downward slope of the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
Goods used to produce other goods are known as
a. transitional goods b. durable goods c. nondurable goods d. services e. intermediate goods