The price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price.
Answer the following statement true (T) or false (F)
True
The formula for price elasticity is the percentage change in quantity demanded divided by the percentage change in price. If the absolute value of the number is greater than 1.0, then demand is elastic. If the number is less than 1.0, demand is inelastic.
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If the price of iPads falls while demand remains unchanged, then total consumer surplus will ____________.
Fill in the blank(s) with correct word.
The Keynesian portion of the short-run aggregate supply (SRAS) curve
A. is vertical. B. slopes upward. C. slopes downward. D. is horizontal.
Beginning with long-run equilibrium, use the aggregate demand and aggregate supply model to illustrate what happens in the short run when the economy suffers a negative supply shock
What will be an ideal response?
Use the three basic questions to describe why perfect competition is efficient
What will be an ideal response?