What is the price elasticity of demand? How is the price elasticity of demand calculated?
What will be an ideal response?
The price elasticity of demand is the responsiveness of the quantity demanded of a good to changes in the price of the good. Price elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. That is:
Ep = [(change in Q)/(Q1 + Q2)/2]/ [(change in P)/(P1 + P2)/2].
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To adjust GDP from market prices to factor cost:
a) Add indirect taxes b) Subtract subsidies c) Deduct indirect taxes and deduct subsidies d) Deduct indirect taxes and add subsidies
Left shoes and right shoes are perfect complements. An indifference curve for left and right shoes is a line with
A) constant slope. B) a 30-degree angle. C) a 45-degree angle. D) a 90-degree angle.
Suppose a fishing boat reaches its most productive use of each person's talent with 15 crew members. More than 15 workers would cause overcrowding. If there are only 10 crew members currently on the boat, adding one more crew member will
a. require the owner to add another boat b. increase the level of labor productivity c. have no effect on labor productivity d. reduce the need for other variable inputs such as fuel e. reduce the total variable cost of operating the fishing boat
Any mechanism by which buyers and sellers negotiate an exchange is a
A. market. B. negotiable instrument. C. brokerage. D. corporation.