We calculate the price elasticity of demand as the
A) ratio of the percentage change in the quantity demanded to the percentage change in price.
B) change in quantity divided by the change in price.
C) ratio of the percentage change in the price to the percentage change in quantity.
D) percentage change in the quantity demanded divided by the percentage change in income.
E) equilibrium quantity divided by the equilibrium price.
A
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Monetary policy goals include
i. maximum employment. ii. stable prices. iii. moderate long-term interest rates. A) i only B) ii only C) i and iii only D) i and ii only E) i, ii, and iii
If actual inflation is less than expected inflation, what is the relationship between the actual real wage and the expected real wage?
A) The actual real wage is higher than the expected real wage. B) The actual real wage is lower than the expected real wage. C) The actual real wage is equal to the expected real wage. D) The relationship between the actual real wage and the expected real wage cannot be predicted.
A government protection for an inventor that provides the inventor with the right to make use of her invention in any way she desires is
A. a trademark. B. a copyright. C. an innovation. D. a patent.
When MR < MC for a firm, the firm should
A) reduce its level of output. B) stay at the same level of output. C) stop producing. D) increase output, unless P < AVC.