The basic formula for the price elasticity of demand is
A. absolute decline in price/absolute increase in quantity demanded.
B. percentage change in price/percentage change in quantity demanded.
C. absolute decline in quantity demanded/absolute increase in price.
D. percentage change in quantity demanded/percentage change in price.
Answer: D
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The real interest rate bringing the supply of saving equal to the demand for saving is an example of the:
A. cost-benefit principle B. equilibrium principle. C. scarcity principle. D. principle of increasing opportunity cost.
If the indifference curves between two goods are L-shaped, the goods are
A) complementary goods. B) substitute goods. C) normal goods. D) inferior goods.
Provide three examples of scarcity that illustrate why even the 1,210 billionaires in the world face scarcity
What will be an ideal response?
If John purchases 10 percent more compact discs when his income increases 5 percent, then:
a. his total expenditure on compact discs will fall as his income increases. b. compact discs would be classified as an inferior good. c. compact discs would be price elastic. d. compact discs would be income inelastic. e. compact discs would be income elastic.