What is the price elasticity of demand and how is it measured?
What will be an ideal response?
The price elasticity of demand is a unit-free measure of responsiveness of the quantity demanded of a good to a change in its price when all other influences on buyers plans remain the same. To calculate the price elasticity of demand we divide the percentage change in quantity demanded by the percentage change in price.
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If real GDP is $6,460 billion, the population is 184.6 million people, and aggregate hours is 170 billion hours, labor productivity is
A) $2.63 an hour. B) $2.86 an hour. C) $35,000. D) $38.00 an hour. E) 920 hours.
The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a gallon of milk?
A) 3/5 of a dozen eggs B) $1.50 C) 1 2/3 dozen eggs D) $2.50
During an economic expansion, housing and stock prices generally
a. fall, leading to a reduction in aggregate demand. b. fall, leading to an increase in aggregate demand. c. rise, leading to a reduction in aggregate demand. d. rise, leading to an increase in aggregate demand.
Most of the poverty in this country can be traced to
A. the recession that began in 1990. B. the heritage of slavery. C. five decades of social and economic change. D. the War on Poverty.