If the value of the price elasticity of demand is 0.2, this means that
a. a 20 percent decrease in price causes a 1 percent increase in quantity demanded
b. a 0.2 percent decrease in price causes a 1 percent increase in quantity demanded
c. a 5 percent decrease in price causes a 1 percent increase in quantity demanded
d. a 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded
e. a 100 percent decrease in price causes a 200 percent increase in quantity demanded
C
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Explain what post hoc fallacy means and give an example
What will be an ideal response?
The measure of production that values production using current prices is called
A) nominal GDP. B) value-added GDP. C) real GDP. D) underground GDP.
Which of the following is most easily excludable?
A) ideas B) capital C) technology D) a set of designs or instructions
The ability of capital deepening by itself to generate sustained economic growth is limited because of the law of diminishing marginal returns
a. True b. False Indicate whether the statement is true or false