The concept of price elasticity of demand measures the
A. number of buyers in a market.
B. slope of the demand curve.
C. extent to which the demand curve shifts as the result of a price decline.
D. sensitivity of consumer purchases to price changes.
Answer: D
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Between 1820 and 1840 freight rates on western rivers declined drastically. The main reason for this drop in prices was _________
a. the decline in the price level. b. tolls and other barriers to trade decreased. c. the decline in monopoly power. d. the frequent use of the steamboat.
Economic growth can be depicted as
A. an inward shift of the PPF. B. an outward shift of the PPF. C. the PPF becoming flatter. D. the PPF becoming steeper.
A country that is borrowing more from the rest of the world than it is lending is called a
A) net debtor. B) net loaner country. C) net lender. D) net borrower. E) net creditor.
Which statement is true if the monopolist can observe the consumer's type in the nonlinear-pricing application?
a. The monopolist supplies the consumer with as much of the good as if it were competitively priced. b. The monopolist's profit approaches the upper bound from the simple linear pricing problem. c. The monopolist extracts all of the surplus from the low type but not the high type. d. The monopolist extracts all of the surplus from the high type but not the low type.