The elasticity of demand is
A) measured in money (e.g., dollars).
B) measured in units of the good (e.g., slices of pizza).
C) unitless.
D) measured in money/unit (e.g., 1.50 $/slice of pizza).
C
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In December 2010, Kansas had a severe ice storm that caused electrical blackouts. The Fictitious Portable Generator firm of Lawrence had several portable generators that could be used by homeowners to provide electricity
Which of the following would be the fair-rules way to provide them? A) The government confiscates the generators owned by Fictitious and distributes them. B) Fictitious is forced by the state to rent the generators at half the normal rate. C) The state sets up a lottery to determine who rents the available generators at the normal rate. D) Fictitious rents generators at the equilibrium market price. E) Fictitious follows government commands about who gets to use the generators.
Which of the following events will increase short-run aggregate supply?
A) an advance in technology B) an increase in resource prices C) an increase in the natural unemployment rate D) an increase in foreign income