The formal definition of price elasticity of demand is
A. quantity demanded divided by price.
B. change in quantity demanded divided by change in price.
C. percentage change in quantity demanded divided by percentage change in price.
D. quantity demanded multiplied by price and divided by 100.
Answer: C
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A) Sam pays $600 for 30 days of guitar classes. He attends an hour-long class every day. If, instead of attending class, he works at a part-time job, he would be paid $5 an hour. Or, he could work at a fast-food outlet and earn $9 per hour
Once he has already paid a nonrefundable fee of $600 to enroll in the class, what is his opportunity cost of attending each hour of class? b) Suppose workers decide to work more and consume less leisure when their hourly wage rate increases. What could explain this behavior?
An automobile manufacturer decides to increase its retained earnings. Assuming all else equal, this will cause:
A) a downward movement along the current credit supply curve of the firm. B) the current credit supply curve of the firm to shift to the left. C) the current credit supply curve of the firm to shift to the right. D) an upward movement along the current credit supply curve of the firm.