Price elasticity of demand relates to the
a. sensitivity of people's quantity demanded to changes in price
b. sensitivity of price to changes in people's quantity demanded
c. percentage shifts in demand when price changes
d. percentage shifts in demand for every one-percent change in price
e. ratio of actual to expected price changes
A
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The ________ model focuses on the relationship between total spending and real GDP in the short run, assuming the price level is constant
A) supply and demand B) national income C) business cycle D) aggregate expenditure
Suppose both the equilibrium price and quantity fall for a particular product. Which of the following best explains this situation?
a. Supply and demand simultaneously increased and the shift in supply was greater than the shift in demand. b. Supply and demand simultaneously increased and the shift in supply was less than the shift in demand. c. Supply and demand simultaneously decreased and the shift in supply was greater than the shift in demand. d. Supply and demand simultaneously decreased and the shift in supply was less than the shift in demand.