A 10 percent increase in price leads to a 20 percent decrease in the quantity demanded. The price elasticity of demand is equal to

In a one-period valuation model, a decrease in the required return on investments in equity causes a(n) ________ in the ________ price of a stock

A) increase; current B) increase; expected sales C) decrease; current D) decrease; expected sales

Which of the following is NOT a factor that increases short-run price stickiness?

A. Consumers tend to prefer stable prices B. Stable prices make it easier for consumers to plan their spending C. A firm can lower its price without fear that rival firms will also lower their prices D. Firms try to avoid price wars