The actual value of price elasticity of demand
A) measures the relative change in quantity demanded when there is a change in price.
B) will change when the units good is measured in changes.
C) varies with changes in supply.
D) is always negative.
D
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In his 1951 book, Social Choice and Individual Values, Kenneth Arrow used the term "unanimity" to mean
a. A beats B only if everyone prefers A to B. b. if everyone prefers A to B, then A beats B. c. if A beats B and B beats C, then A must best C. d. everyone who is eligible to vote must vote; otherwise, the outcome is invalid.
Stanley Jevons, an economist in the nineteenth century, noted a high correlation between economic prosperity and sunspots. Based on this observation he developed a "sunspot theory" of how the economy operated. We now know that Jevons
A) committed the ceteris paribus error. B) committed the fallacy of composition. C) was confusing causality. D) showed good reasoning for the nineteenth but not the twentieth century
If the firm represented in the diagram is currently producing and selling Q a units, what is the price charged?
A. P0 B. P1 C. P2 D. P3
Which of the following is not a component of the demand for loanable funds?
A. Household purchases of housing and durable consumer goods. B. Business purchases of capital goods. C. Government financing of the public debt. D. Household saving.