If the price of chocolate increases by 15 percent and the quantity demanded of chocolate declines by 5 percent, the price elasticity of demand ( ) is -3
a. True
b. False
Indicate whether the statement is true or false
False
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We don't typically see wages __________ in response to an economic upswing because ____________.
A. rise; they are "sticky," and are slow to respond to shifts in the economy B. rise; they cannot rise above the equilibrium in any circumstance C. fall; they are "sticky," and are slow to respond to shifts in the economy D. fall; they cannot fall below where they were previously set due to inflation
If the wage rate increases, there is an increase in the quantity of labor supplied. This means the labor supply curve shifts outward
a. True b. False
People tend to give up watching TV in order to study for an exam when the:
a) Marginal utility of studying exceeds the marginal utility of watching TV. b) Marginal utility of watching TV exceeds the marginal utility of studying. c) Wage rate falls. d) Total utility of studying exceeds the total utility of watching TV.
If the price of a normal good falls, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.
A. more; more B. more; less C. less; more D. less; less