Generally, we calculate elasticity as the
A. percentage change in price divided by the percentage change in quantity demanded/ supplied
b. percentage change in quantity demanded/ supplied divided by the change in price
c. percentage change in quantity demanded/ supplied divided by the percentage change in price
d. change in quantity demanded/ supplied divided by the change in price
Answer: c. percentage change in quantity demanded/ supplied divided by the percentage change in price
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The aggregate demand curve is Y = 75 - 3?, and the short-run aggregate supply curve is ? = 6.2 + 0.8(Y - 70). Assuming adaptive expectations, calculate the inflation rate and output for the next period
What will be an ideal response?
Governments can improve market outcomes for
a. public goods but not common resources. b. common resources but not public goods. c. both public goods and common resources. d. neither public goods nor common resources.
Which of the following statements is true? Other things equal, the demand for labor will be less elastic the:
A. easier it is to substitute capital for labor. B. greater the elasticity of resource supply. C. greater the elasticity of product demand. D. smaller the ratio of labor costs to total costs.
Between 1981 and 2015, the overall mortality rate in the United States
A) decreased by more than 25 percent. B) slowly but steadily increased. C) remained fairly constant. D) was similar to the average rate in most low-income countries.