Demand is said to be price elastic at a point on a demand curve if a
a. 1 percent rise in price reduces the quantity demanded by more than 1 percent.
b. 1 percent rise in price reduces the quantity demanded by less than 1 percent.
c. 1 percent rise in price reduces the quantity demanded by more than 10 percent.
d. 10 percent rise in price reduces the quantity demanded by less than 10 percent.
a
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Social regulations come about because of
A) market failure B) government failure C) changes in the social contract D) rent-seeking by bureaucrats.
Which of the following is most likely to have a negative income elasticity of demand?
a. Overseas vacations b. Fancy restaurant meals c. Day-old bakery products at a discount d. New cars
Real-wage unemployment can be caused by which of the following?
A. Retraining programs B. Low-interest student loans C. Minimum wage laws D. None of these cause real-wage unemployment.
A basic contention of supply-side economists is that regulatory costs are now too ________ and cause AS to shift to the ________.
A. high; right B. low; right C. high; left D. low; left