Price elasticity of demand is measured by the percentage change in
a. income divide by the percentage change in price
b. quantity demanded divided by the percentage change in income
c. price divided by the percentage change in quantity demanded
d. quantity demanded divided by the percentage change in price
e. total revenue divided by percentage change in price
D
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Suppose a ten firm industry has total sales of $35 million per year. The largest firm have sales of $10 million, the third largest firm has sales of $4 million, and the fourth largest firm has sales of $2 million
If fifth through tenth largest firms combined have annual sales of $12 million, the four-firm concentration ratio for this industry is A) 45.7 percent. B) 80 percent. C) 65.7 percent. D) none of the above.
If real disposable income increased by $10,000 and real consumption spending increased by $7,500, what is the marginal propensity to consume (MPC)?
a. 0.25 b. 1.0 c. 0.75 d. 1.75 e. 1.25