The price elasticity of demand shows
A) the relationship between market price and household income.
B) the proportionate amount by which the quantity demanded changes in response to a proportionate change in price.
C) the quantity demanded at a given price.
D) the proportionate amount by which the price changes in response to a proportionate change in quantity demanded.
Answer: B
You might also like to view...
Which of the following statements is correct?
a) The Federal Reserve's actions are subject to executive branch control. b) Politically controlled banks are better at fighting inflation than independent central banks. c) The Federal Reserve is considered to be an independent central bank. d) The Federal Reserve System is not subject to Congressional oversight.
In general, an increase in price could be caused by either:
a. an increase in demand or a decrease in supply. b. an increase in demand or an increase in supply. c. a decrease in demand or an increase in supply. d. an increase in demand or an increase in supply.