The income elasticity of demand is the
A) absolute change in quantity demanded resulting from a one unit increase in income.
B) percent change in quantity demanded resulting from the absolute increase in income.
C) percent change in quantity demanded resulting from a one percent increase in income.
D) percent change in income resulting from a one percent increase in quantity demanded.
E) percent change in income resulting from a one percent increase in price.
C
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Total utility describes
A) the benefit gained from all consumption. B) an increase in consumption multiplied by the gain in utility. C) total consumption multiplied by marginal utility. D) total consumption divided by marginal utility.
Health insurance markets have a problem with insuring people who are "poor health risks" while many people who are "good health risks" do not buy insurance. This problem is an example of
A) market signaling. B) moral hazard. C) adverse selection. D) asymmetric information.
Use the saving and investment equation to explain why the United States experienced large current account deficits in the late 1990s
What will be an ideal response?
The formula for elasticity of demand (in words) is
A. the change in quantity divided by the change in price. B. the percentage change in quantity divided by the percentage change in price. C. the percentage change in price divided by the percentage change in quantity. D. the change in price divided by the change in quantity.