Price elasticity of demand measures
A) how responsive sales are to a change in buyers' incomes.
B) how responsive quantity demanded is to a change in price.
C) how responsive sales are to changes in the price of a related good.
D) how responsive suppliers are to price changes.
B
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Which of the following is a feature of a perfectly competitive market?
A) There is only one seller of a commodity. B) The government rations commodities. C) Commodities are auctioned to the highest bidder. D) Each seller is too small to influence the market price.
In a one-period economy
A) consumption equals disposable income. B) consumption equals disposable income plus the value of non-market work. C) savings is always positive. D) consumers may increase their consumption by borrowing.
Two firms, A and B, are in the market and barriers to entry keep other firms from entering. The managers are involved in a Cournot oligopoly and the figure shows the best response curves for the two firms . In the Cournot equilibrium, Firm A produces ________ units per year and Firm B produces ________ units per year.
A) 250; 200 B) 400; 200 C) 250; 500 D) 200; 100
In the short run, the aggregate supply curve:
A. is perfectly inelastic. B. slopes upward. C. is perfectly elastic. D. slopes downward.