The value of the absolute price elasticity of demand for good A is 3. The absolute price elasticity for good B is 2. Which good's quantity demanded is less responsive to a change in price?
A. Good A
B. Good B
C. They are equally responsive.
D. Not enough information is given.
Answer: B
You might also like to view...
In the classical model, if money growth and velocity are constant, then:
a. the price level will rise at the rate of output growth. b. the price level will be constant. c. the price level will fall at the rate of output growth. d. none of the above.
Stagflation is the simultaneous occurrence of
A) low inflation and high unemployment. B) high inflation and low unemployment. C) low inflation and low unemployment. D) high inflation and high unemployment.
By the mid-1970s, the average workweek was about _____% lower than it was in 1900.
Fill in the blank(s) with the appropriate word(s).
Which of the following statements concerning pollution is correct?
A) Economic efficiency requires that pollution be completely eliminated. B) Economic efficiency dictates that the optimal amount of pollution arises at the point at which price equals private marginal cost. C) Pollution should be reduced to the point at which the marginal benefit from further reduction equals the marginal cost of further reduction. D) Pollution should be reduced to the extent necessary to return production to the production possibilities frontier.