Assuming we are considering a normal good, the calculated price elasticity of demand is:
A) always positive.
B) always negative.
C) positive if demand is elastic and negative if demand is inelastic.
D) positive if demand is inelastic and negative if demand is elastic.
B
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According to the CPI basket, the largest item in the households' budgets is
A) apparel. B) education. C) food. D) transportation. E) housing.
Congress passed the Freedom to Farm Act in 1996. What was the purpose of this Act?
A) to encourage more people to become farmers B) to phase out the use of price ceilings in agricultural markets C) to phase out price floors and return to a free market in agriculture D) to grant free land to farmers in order to produce crops that were particularly scarce
In the classical model, a temporary decrease in government spending would cause a decrease in
A) output, the real interest rate, real wages, and the price level. B) employment, the real interest rate, real wages, and the price level. C) output, employment, the real interest rate, and the price level. D) output, employment, real wages, and the price level.
The establishment of Jamestown in 1607 was financed by
a. the London Company. b. the Plymouth Company. c. the English Parliament. d. Sir Walter Raleigh.