Money held for making everyday market purchases represents the

Elasticity is a measure of the responsiveness of change in quantity demanded to a change in price

a. True b. False Indicate whether the statement is true or false

When economists say that market equilibrium is consistent with economic efficiency, they mean

a. the total gains from trade (the combined area of producer and consumer surplus) are smaller than potentially could be the case at a different price and quantity. b. all units creating more benefit than cost have been produced. c. some units have been produced that cost more than the benefits they create. d. consumers and producers have made decisions without properly taking into account the market price.