"The slope of the demand curve gives the elasticity of demand." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. The slope gives absolute change in price divided by the absolute change in quantity demanded. Price elasticity of demand is measured using relative changes.
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The short-run price elasticity of demand for refrigerators is relatively inelastic
Indicate whether the statement is true or false
Which of the following statements is true?
A) The average product of labor is at its maximum when the average product of labor equals the marginal product of labor. B) The average product of labor is at its minimum when the average product of labor equals the marginal product of labor. C) The average product of labor tells us how much output changes as the quantity of workers hired changes. D) Whenever the marginal product of labor is greater than the average product of labor the average product of labor must be decreasing.