To calculate the price elasticity of demand we divide
A) the average price by the average quantity demanded.
B) the percentage change in quantity demanded by the percentage change in price.
C) rise by the run.
D) the percentage change in price by the percentage change in quantity demanded.
B
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Which of the following statements is true?
A) The supply of oil is perfectly inelastic; therefore, as the demand for oil increases over time the price of oil increases significantly. B) The supply of oil is very inelastic over short time periods but becomes more elastic over time. A given shift in supply results in a smaller increase in the price of oil when the supply is more elastic. C) Over short periods of time increases in the demand for oil are greater than increases in the supply of oil. Over the long run increases in the demand and the supply of oil are about equal. As a result, the price of oil increases greatly in the short run but is stable in the long run. D) The supply of oil is very elastic over short time periods but becomes perfectly inelastic over time. A given shift in supply results in a greater increase in the price of oil when the supply of oil is perfectly inelastic.
U.S. imports are most likely to increase when
A. U.S. GDP decreases. B. U.S. unemployment rates fall. C. U.S. prices fall. D. foreign prices rise.