Refer to Figure 2.4. The elasticity of demand at point a is given by:





A. the slope of line cd times (P1/Q1).



B. the slope of line ab times (Q1/P1).



C. the inverse of the slope of line cd times (P1/Q1).



D. the inverse of the slope of line ab times (Q1/P1).

C. the inverse of the slope of line cd times (P1/Q1).

Economics

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If hot dogs are an inferior good, a decrease in income will cause the equilibrium price of hot dogs to rise

Indicate whether the statement is true or false

Economics

An automobile is an asset, but it is not liquid because:

A. the owner may still be making payments on the loan. B. the automobile may not be in good repair. C. the transactions costs for turning it into money are high. D. the automobile cannot be sold without a loss in value.

Economics