The result of the calculation of the price elasticity of demand is
A. always negative.
B. always positive.
C. always greater than one.
D. sometimes positive, sometimes negative.
Answer: A
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The estimated price elasticities of demand for the products listed in the table as "Product A" are from Table 6-2 in the text
Indicate whether the products listed as "Product B" will have a more elastic or less elastic demand than the corresponding Product A. Product A Estimated Elasticity for Product A Product B Is Estimated Elasticity for Product B More Elastic or Less Elastic than for Product A? Beer -0.29 Samuel Adams Boston Lager Chicken -0.37 Organically raised chicken Cocaine -0.28 Illegal narcotics Cigarettes -0.25 Marlboro Lights Restaurant meals -0.67 Denny's Grand Slam breakfast
The cumulative difference between the price producers actually receive for a good and the lowest price for which they would have been willing to sell it is called:
A. consumer surplus. B. total economics surplus. C. producer surplus. D. lost surplus.
The greater the flow of investment spending, the greater the increase in the stock of:
A. saving. B. income. C. capital. D. money.
Most economists accept the need for a required pension system because
A. economists believe that saving is good for the soul. B. people will save less than is optimal knowing that they can rely on welfare, and people may not have the information necessary to calculate their correct level of savings. C. people will save less than is optimal knowing that they can rely on welfare. D. people may not have the information necessary to calculate their correct level of savings.