Price elasticity of demand measures the
A) slope of the demand curve.
B) sensitivity of quantity demanded to changes in the price of substitute goods.
C) sensitivity of price to changes in the quantity demanded of substitute goods.
D) sensitivity of quantity demanded to changes in price.
D
Economics
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A monetary policy which is likely to bring about a "soft landing" requires that interest rates be ________ while inflation is ________ and unemployment is ________ the natural level
A) raised, rising, above B) raised, falling, below C) lowered, falling, above D) lowered, rising, below
Economics
If Px = Py, then when the consumer maximizes utility,
A) X must equal Y. B) MU(X) must equal MU(Y). C) MU(X) may equal MU(Y), but it is not necessarily so. D) X and Y must be substitutes.
Economics