The smaller is the absolute price elasticity of demand, the
A) smaller is the responsiveness of quantity demanded to the price change.
B) larger is the responsiveness to a price change.
C) larger is the income of the buyer.
D) higher is the change in demand to an income change.
Answer: A
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According to the Solow model, given the levels of total efficiency units of labor and technology:
A) efficiency units of labor do not play any role in the determination of steady-state equilibrium level of GDP. B) there is a maximum fixed level of GDP that an economy can achieve by increasing savings. C) increases in the savings rate is the sole reason for sustained economic growth. D) increases in the rate of physical capital accumulation can be the sole reason for sustained economic growth.
The formula is the
A) actual change in the money supply. B) discount rate. C) potential money multiplier. D) federal funds rate.
The combination of rising inflation and higher unemployment is called:
A) recession. B) expansion. C) stagflation. D) deflation.
An increase in the domestic real interest rate will tend to cause, other things the same ________
A) a depreciation of the domestic currency B) an increase in the demand for domestic goods and services C) an increase in demand for foreign currencies D) an appreciation of the domestic currency