________: a measure of the relative response of consumption of a good or service to changes in price
Fill in the blank(s) with correct word
Own-price elasticity
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Assume that your state government has placed a price ceiling of $.20 per kilowatt hour on electricity. The equilibrium price per kilowatt hour for electricity is $.25. The government's action will result in
A) a surplus of electricity in the electricity market. B) an increase in the price of electricity to $.25 per kilowatt hour. C) an increase in producer surplus. D) a deadweight loss.
A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . All else equal, if the firm continues its production in the same economic environment, the firm's economic profits should
a. increase if output is low enough b. decrease c. stay the same d. increase if output is high enough
Around the year 2000, Robert Mugabe needed money to bribe his enemies and reward his political allies, but he faced all of the following problems EXCEPT:
A. his policies had scared away investors. B. the Central Bank refused to print any more money. C. his people were unemployed and hungry. D. there was nothing left to tax.
The federal funds rate is the interest rate the:
A. banks charge individual investors for Fed funds. B. banks charge each other in the Fed funds market. C. government charges banks for Fed funds. D. Fed charges banks for Fed funds.