Price elasticity of demand measures
A) how responsive sales are to a change in buyers' incomes.
B) how responsive quantity demanded is to a change in price.
C) how responsive sales are to changes in the price of a related good.
D) how responsive suppliers are to price changes.
B
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Institutions and laws, such as patent protection, that foster innovations lead to economic growth because they
A) give businesses loans to buy new machinery. B) give confidence to consumers that the products they buy are safe. C) allow the government control of the innovations. D) give confidence to inventors that they will profit from their innovation.
An economy is in long-run equilibrium when output equals potential output. Why is there no long-run equilibrium rate of "potential inflation"?
What will be an ideal response?