To ensure that we get the same result for price elasticity no matter which direction we move on the demand curve, we must take the average of the
a. initial price and the initial quantity demanded and the average of the new price and the new quantity demanded
b. new price and the initial quantity demanded and the average of the new quantity demanded and the initial price
c. initial price and the new price and the average of the initial quantity demanded and the new quantity demanded
d. initial price and the new price only
e. new quantity demanded and the initial quantity demanded only
C
You might also like to view...
In a prisoners' dilemma game, in the Nash equilibrium
A) neither player gets his or her best outcome. B) both players get their best outcome. C) one player gets his or her best outcome and the other player does not. D) collusion would not alter the outcome. E) Either answer A or C might be correct depending on whether the players communicate with each other or do not communicate with each other.
A firm that is earning zero economic profits has a strong incentive to exit the industry
a. True b. False Indicate whether the statement is true or false
Discuss some reasons why reductions in world trade barriers are driving the world toward a global economy.
What will be an ideal response?
Normative economics is:
a. based on facts b. based on value judgments c. based on the use of the scientific method d. applicable only to macroeconomics