The price elasticity of demand measures the ________ that results from a ________
A) change in quantity demanded; change in price
B) change in price; change in the quantity demanded
C) percentage change in price; percentage change in the quantity demanded
D) percentage change in the quantity demanded; percentage change in price
E) percentage change in the quantity demanded; change in price
D
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Liquidity refers to
A) the number of times a dollar changes hands in the creation of GDP in an economy. B) the number of shares of stock a corporation issues. C) the ease with a stock can be traded for a bond. D) the ease with which a financial security can be traded for cash.
If a firm is successful in its efforts to reduce the price elasticity of demand for its product, all else constant, the optimal markup that can be used in setting price will increase
Indicate whether the statement is true or false
If a firm in a monopolistically competitive market has a demand curve shifting to the right, it could be that:
A. the selling price is less than the average total cost of the firm. B. firms are leaving the market. C. negative economic profits are being earned. D. All of these statements are true.
Cooperation that continues as long as the players continue to cooperate is
A. opportunistic behavior. B. a negative-sum game. C. tit-for-tat strategic behavior. D. a zero-sum game.