What is the price elasticity of demand? In terms of percentage changes, what is its formula?
What will be an ideal response?
The price elasticity of demand is a measure of the responsiveness of quantity demanded to a change in price. The formula for the price elasticity of demand is the absolute value of the percentage change in quantity demanded divided by the percentage change in price.
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Of the $840 billion American Recovery and Reinvestment Act stimulus package which was enacted in 2009, the largest spending increase occurred in which category?
A) health care, social services, and education B) transportation and housing C) energy and the environment D) military, veterans, and homeland security
Profit-maximizing monopolists choose a level of output such that: a. average total cost is minimized
b. price equals marginal revenue but exceeds average variable cost. c. price equals marginal cost but exceeds average variable cost. d. marginal revenue equals marginal cost.