Price elasticity of demand refers to the:
a. percentage increase in price in response to a percentage increase in quantity demanded.
b. percentage decrease in price in response to a percentage increase in income.
c. minimum amount that consumers will pay for a percentage change in quantity demanded or supplied.
d. responsiveness of quantity demanded to a change in the price of a good.
d
You might also like to view...
Gordon argues that individual workers and firms prefer long-term contracts, but that such contracts
A) raise the costs of doing business, a macroeconomic externality. B) insure that output alone is adjusted as AD changes and therefore, such contracts impose high costs of output and employment instability on society. C) insure that the price level alone is adjusted as AD changes and therefore, such contracts impose high costs of output and employment instability on society. D) insure a macroeconomic externality, rigid unemployment.
At the equilibrium point in a perfectly competitive industry, the total surplus (the sum of the consumer surplus and producer surplus) will be at its maximum.
Answer the following statement true (T) or false (F)
The coupon rate is the:
A. interest rate promised when a bond is issued. B. regular payment of interest to a bondholder. C. maximum interest rate that can be paid on a bond. D. amount originally lent.
If there is an increase in the demand for U.S. automobiles, the
A) demand for dollars will fall. B) demand for dollars will rise. C) supply of dollars will fall. D) supply of dollars will rise.