The price elasticity of demand is calculated as the
A) percentage change in quantity demanded multiplied by the percentage change in price.
B) percentage change in quantity demanded divided by the percentage change in price.
C) percentage change in price divided by the percentage change in quantity demanded.
D) percentage change in quantity demanded plus the percentage change in price.
B
You might also like to view...
A major reason for the existence of financial intermediaries is
A) transactions costs that would be incurred without their existence. B) the fees charged by dealers and brokers in direct finance are so high. C) the problem of symmetric information. D) to assist borrowers in buying securities in financial markets.
Diminishing marginal returns do not exist for increases in
A) capital stock. B) labor. C) total factor productivity. D) Diminishing marginal returns exist for all of the above answers.
The ability of a monopoly to charge a price that exceeds marginal cost depends on
A) the price elasticity of supply. B) price elasticity of demand. C) slope of the demand curve. D) shape of the marginal cost curve.
Diseconomies of scale exist over the range of output for which the long-run average cost curve is:
a. constant. b. falling. c. rising. d. subject to diminishing returns.