Producers want to calculate the price elasticity of demand because they want to:
A. know the goods and services for which consumers are most sensitive to price changes.
B. be able to predict the future preferences of their customers.
C. know that consumers will have the same response to a price change regardless of the good or service.
D. understand what goods their customers dislike the most.
A. know the goods and services for which consumers are most sensitive to price changes.
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Approaching a business cycle peak, actual real GDP ________ natural real GDP, which causes inflation to ________
A) exceeds, remain constant B) exceeds, accelerate C) is less than, decelerate D) equals, accelerate E) equals, remain constant
When consumers would have been willing to pay higher prices at various quantities consumed than the market clearing price, the differences are called
A. producer surplus. B. consumer surplus. C. scarcity. D. opportunity cost.