The formal definition of price elasticity of demand is
A. quantity demanded divided by price.
B. change in quantity demanded divided by change in price.
C. percentage change in quantity demanded divided by percentage change in price.
D. quantity demanded multiplied by price and divided by 100.
Answer: C
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A plan that sets targets to cover all major aspects of the national economy is known as a/an _____ plan:
(a) interindustry (b) complete (c) comprehensive (d) economic
If a firm's output more than doubles when all inputs are doubled, production is said to occur under conditions of
A) increasing returns to scale. B) imperfect competition. C) intra-industry equilibrium. D) constant returns to scale E) decreasing returns to scale.
The income effect implies that there is a positive relationship between
A) income and the unemployment rate. B) the unemployment rate and the inflation rate. C) aggregate supply and aggregate demand. D) monetary growth and interest rates.
A brew pub is opening in a former warehouse. Its fixed costs include ______, and variable costs include ______.
a. its liquor license fee; payments for hops and yeast b. wages and tips paid to staff; hiring a marketing service c. utility payments; health inspection charges d. brewery association dues; daily sales receipts