The price elasticity of demand is a measure of
A) the responsiveness of the quantity demanded of a good to a changes in the price of the good.
B) the quantity demanded of a good at a given price.
C) the demand for a product holding prices constant.
D) the horizontal shift in the demand curve when the price of a good changes.
Answer: A
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Refer to Scenario 5.7. Since Natasha is a risk-neutral executive, she would choose
A) A. B) B. C) C. D) D. E) E.
Apple is an American company, but its iPhones are assembled in China. The sale of each iPhone then is counted in US GDP as:
A. consumption. B. investment. C. an import. D. an export.
The supply curve for whiskey is the typical upward-sloping straight line, and the demand curve for whiskey is the typical downward-sloping straight line. When whiskey is taxed, the area on the relevant supply-and-demand graph that represents
a. government's tax revenue is a rectangle. b. the deadweight loss of the tax is a triangle. c. the loss of consumer surplus caused by the tax is neither a rectangle nor a triangle. d. All of the above are correct.
Refer to the graph shown. At the price of $1.60, given market demand for the product:
A. the firm will make zero economic profits. B. there will be a shortage of the product. C. the firm will go out of business. D. the firm will incur losses.