Which of the following statements concerning the slope and price elasticity of demand along a straight-line demand curve is correct?
a. Slope measures the change in quantity resulting from a one-dollar change in price.
b. Elasticity measures the percent change in price resulting from a one-percent change in quantity demanded.
c. Slope measures the dollar change in price for a one-unit change in quantity demanded.
d. Elasticity measures the unit change in quantity demanded resulting from a one-dollar change in price.
e. Slope measures the percent change in price resulting from a one-percent change in quantity demanded.
C
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Foreign direct investment is defined as
A) the acquisition of more than 10 percent of the shares of ownership in a company in another nation. B) funds allocated into a foreign stock market that represent an ownership share of firms less than 5 percent. C) purchasing both capital equipment and government bonds abroad. D) purchasing government bonds.
A price-discriminating monopoly charges the lowest price to the group that:
a. has the most elastic demand. b. purchases the largest quantity. c. engages in the most arbitrage. d. is least responsive to price changes.