Price elasticity of demand measures the:
A. slope of the demand curve.
B. sensitivity of quantity demanded to changes in the price of substitute goods.
C. sensitivity of price to changes in the quantity demanded of substitute goods.
D. sensitivity of quantity demanded to changes in price.
D. sensitivity of quantity demanded to changes in price.
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An increase in the price of a good will a. increase demand
b. decrease demand. c. increase quantity demanded. d. decrease quantity demanded.
Countries tend to export different goods and services because of:
a. differences in their comparative advantages. b. differences in tastes and technological needs. c. differences in income. d. similarities in resource endowment. e. differences in the exchange rates.
A negative demand shock would lead to a decline in both the price level and output in the short run
a. True b. False
The product price is $10 per unit and the cost per worker is $540. How many workers will the firm employ?
A profit-maximizing firm operates in purely competitive product and resource markets, with the following resource and production schedules.
A. 4
B. 5
C. 6
D. 7