When calculating price elasticity of demand, if the percentage change in price is negative, then the percentage change in quantity demanded is typically:
A. negative.
B. less than one.
C. positive.
D. greater than one.
Answer: C
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Shortage means the same thing as scarcity
Indicate whether the statement is true or false
Firms are ________ with an economic profit of zero, they will ________ in the industry since they ________ be better off in another industry
A) satisfied, stay, won't B) unsatisfied, leave, will C) satisfied, leave, will D) unsatisfied, stay, won't
When a tax is imposed on a good, the
a. supply curve for the good always shifts. b. demand curve for the good always shifts. c. amount of the good that buyers are willing to buy at each price always remains unchanged. d. equilibrium quantity of the good always decreases.
One solution to long-run structural problems could involve:
A. moving along the domestic supply curve. B. shifting the domestic supply curve up. C. shifting the world supply curve up. D. shifting the world supply curve down.