Which of the following is true with respect to the price elasticity of demand?
a. The coefficient of price elasticity of demand will change with changes in the units of measurement (for instance, going from pounds to ounces).
b. Elasticity of demand is equal to the slope of the demand curve.
c. Elasticity measures the sensitivity of total expenditure to a change in price of a good.
d. Elasticity will tend to be greater for a relatively expensive product than for a cheaper one.
e. A coefficient of 1 means that the percentage change in total expenditure is equivalent to the percentage change in price.
d
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The market mechanism
A. Works through central planning by government. B. Eliminates market failures created by government. C. Works because prices serve as a means of communication between consumers and producers. D. Is not a very efficient means of communicating consumer demand to the producers of goods and services.
In 2009, ___________ exceeded Germany in value of exports becoming the world's largest exporter.
A. China B. Japan C. Canada D. Germany