Price elasticity of demand is calculated as the change in price divided by the change in quantity demanded.
Answer the following statement true (T) or false (F)
False
You might also like to view...
In the above figure, the shift in the demand curve from D to D1 can be the result of
A) a decrease in income if pizza is a normal good. B) a decrease in the price of a sub sandwich, a substitute for pizza. C) an increase in the price of soda, a complement to pizza. D) an increase in the number of teenagers, all of whom demand more pizza than do other age groups. E) new technology that increases the profit from producing pizza.
According to the quantity theory of money, a decision on the part of all business firms currently paying employees on a monthly basis to begin paying on a weekly basis would be expected to
a. increase velocity and increase nominal GDP. b. increase velocity and decrease nominal GDP. c. decrease velocity and increase nominal GDP. d. decrease velocity and decrease nominal GDP.
Keynesian economists, like classical economists, believed that prices and wages were flexible in both directions
Indicate whether the statement is true or false
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher