The price elasticity of demand is
A) always positive, so there is no reason to consider the absolute value of the price elasticity of demand.
B) always negative, but by convention, economists typically express the price elasticity of demand as an absolute value.
C) always equal to -1, which by convention economists typically express as an absolute value, or 1.
D) always equal to zero, so there is no reason to consider the absolute value of the price elasticity of demand.
B
You might also like to view...
When marginal product is decreasing, marginal cost is
a. less than zero b. equal to zero c. constant d. decreasing e. increasing
Suppose A and B are complementary goods. Other things being equal, the demand curve for A will shift to the right when the price of B goes up
a. True b. False Indicate whether the statement is true or false
If a product has a high marginal utility, then
A. The demand curve will be downward-sloping. B. A consumer is willing to pay a high price for it. C. Consumers will not purchase any more of the good. D. Consumers will also have a low total utility.
The law of diminishing returns implies:
A. The more hours you spend studying the less you will know B. Your understanding will be increased by decreasing your marginal study time C. Eventually, the more hours you spend studying per day, the less you will learn with each added hour D. The more hours you spend studying per day, the more you will learn with each added hour