The price elasticity of demand is important to firms because
a. it explains the relationship between income and demand for the goods they sell
b. it shows how price changes affect total expenditures on the goods they sell
c. the law of demand suggests that elasticity falls as total expenditures continuously rises
d. it helps identify the equilibrium price and quantity in the market
e. it relates price to supply
B
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A lack of current saving can be offset by borrowing, but the availability of borrowing is limited by the prospects for future saving
a. True b. False Indicate whether the statement is true or false
Elasticity
a. deals with percentage changes in price and quantity demanded. b. employs percentage changes calculated in terms of average values of the prices and quantities at issue. c. is generally stated in absolute value. d. All of the above are correct.
Which of the following is likely to have the most price elastic demand?
a. milk b. sailboats c. good X in the short run compared to good X in the long run d. gasoline
Many Americans have been hurt by recent economic events. Raising the minimum wage is the best policy to improve the wages and employment opportunities of Americans. This argument is
What will be an ideal response?