The percentage change in the quantity demanded in response to a percentage change in the price is known as the

What is an externality?

a) the impact of society's decisions on the well-being of society b) the impact of a person's actions on that person's well-being c) the impact of a person's actions on the well-being of a bystander d) the impact of society's decisions on the well-being of one person in that society

The River Rouge plant was built by the Ford Motor Company in the 1920s to produce the company's Model A car. Which of the following is evidence that the River Rouge plant suffered from diseconomies of scale?

A) Model A cars made at the River Rouge plant failed to earn a profit. Ford reduced the average cost of the Model A by cutting its employees' wages. B) Model A cars made at the River Rouge plant failed to earn Ford a profit. Ford eventually constructed smaller plants to make the Model A at a lower average cost. C) Model A cars made at the River Rouge plant failed to earn a profit because the price of steel used to manufacture the Model A rose when workers in the steel industry went on strike. D) Despite an expensive advertising campaign the Model A did not earn the company a profit.