The actual value of the price elasticity of demand is always
A. positive because of the law of demand.
B. positive because of diminishing marginal utility.
C. negative because percentages can only be negative.
D. negative because of the law of demand.
Answer: D
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If real GDP grows at a constant rate of 2 percent per year, using the "rule of 72" it will take approximately ___ years for real GDP to double
a. 15 b. 20 c. 10 d. 36
Considering the balance sheet for all commercial banks in the U.S., the net worth of banks is:
A. about 11% of total liabilities. B. about 4 times total liabilities. C. about 5 times total assets. D. about the same as total assets.
When the price of Ford pickup trucks rises from $18,000 to $19,000, the quantity of Chevy trucks demanded increases from 112,000 to 144,000. What is the cross elasticity of demand between Ford and Chevy trucks?
What will be an ideal response?
"The marginal rate of substitution of the good measured along the x-axis increases as a consumer moves downward along an indifference curve." Is the previous statement correct or not?
What will be an ideal response?