The price elasticity of demand is equal to
A) the value of the slope of the demand curve.
B) the change in quantity demanded divided by the change in price.
C) the percentage change in price divided by the percentage change in quantity demanded.
D) the percentage change in quantity demanded divided by the percentage change in price.
Answer: D
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A constant-cost industry is one in which
A) output increases lead to productivity gains. B) the marginal product of labor is constant. C) there is no change in long-run per-unit costs, even as output varies. D) each firm has a horizontal long-run average cost curve.
Behavioral economists recommend mechanisms that help people:
A. find the lowest cost for items that maximize their utility. B. stick with choices they say they want to make, but often don't. C. enact utility-maximizing decisions based on complete information. D. Behavioral economists have not developed tools that help people with any of these.
Goods with many substitutes tend to have more price elastic demand curves
Indicate whether the statement is true or false
Total revenue will be at its largest value on a linear demand curve at the
a. top of the curve, where prices are highest. b. midpoint of the curve. c. low end of the curve, where quantity demanded is highest. d. None of the above is correct.