A 4 percent reduction in the price of a product causes consumer expenditure to remain the same. The price elasticity of demand is:
A. greater than zero but less than 1.
B. equal to 1.
C. greater than zero.
D. zero.
Answer: B
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Refer to Table 19-21. Consider the following data for a simple economy: Calculate nominal GDP and real GDP for 2016, using 2014 as the base year. Show your work
What will be an ideal response?
Flat taxes are more equitable than graduated tax schedules.
A. True B. False C. Uncertain
Which of the following would be studied by macroeconomists?
A. Inflation in developing countries B. The effect of government subsidies on sugar prices C. The effect of rent controls on housing prices in New York City D. The impact of the minimum wage on families below the poverty level
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.