What does the price elasticity of demand? measure?
A. The change in quantity demanded when there is a? 1% change in income.
B. The amount that the demand curve shifts when there is a change in the price of the good.
C. How long it takes consumers to react when there is a change in the price of a good.
D. The responsiveness of quantity demanded to a change in the price of a good.
Answer: D. The responsiveness of quantity demanded to a change in the price of a good
You might also like to view...
Proprietorships are
A) the most common form of business organization in the country. B) responsible for most of the profits in the country. C) generally large relative to other business organizations. D) easy to form but difficult to dissolve.
Suppose currency traders believe that in the future, the United States will experience more rapid inflation than will Japan. The traders ______.
a. also believe that the U.S. dollar will soon appreciate in value b. will buy more U.S. dollars, pushing up the price c. holding U.S. dollars will convert them to yen, increasing the demand for yen d. also believe that Japanese consumers will soon demand more U.S. goods
income-expenditure framework, if planned aggregate expenditures less than real gross domestic product (GDP)
What will be an ideal response?
Which term measures production well and indicates when a country is materially better or worse off in terms of jobs and incomes?
a. GDP b. Standard of living c. GDP per capita d. Nominal GDP