Refer to the above figure for the market of Cheerios. Which diagram depicts the effect of an increase in the price of Cheerios?
A) A
B) B
C) neither graph
D) both graphs
C
Economics
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Price elasticity of demand is defined as: a. the slope of the demand curve
b. the slope of the demand curve divided by the price. c. the percentage change in price divided by the percentage change in quantity demanded. d. the percentage change in quantity demanded divided by the percentage change in price.
Economics
When a new firm considers entering a market, it takes into account only the profit it would make. What are the two external effects that occur in the market that the firm does not consider?
Economics