The price elasticity of demand for good x is defined as:
a. percentage change in px / percentage change in x.
b. percentage change in x /percentage change in px.
c. percentage change in x/percentage change in income.
d. percentage change in x /percentage change in py.
b
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A monopolist's supply curve cannot be derived directly from its marginal cost curve as in the case of a competitive firm
a. True b. False Indicate whether the statement is true or false
Since 2002, the Fed has set the primary discount rate above the IOER rate. Why is this likely to prevent the spikes in the market federal funds similar to the ones that occurred in previous years?
What will be an ideal response?
Since 2008, the Fed has conducted a policy that involves direct lending to private firms. Those actions of the Fed are called
A) open market operations. B) quantitative easing. C) federal funds rate targeting. D) credit policies.
How does the imposition of an excise tax on a good affect its market equilibrium?
A) Equilibrium quantity decreases, and equilibrium price decreases. B) Equilibrium quantity decreases, and equilibrium price increases. C) Equilibrium quantity increases, and equilibrium price decreases. D) Equilibrium quantity increases, and equilibrium price increases