Price elasticity of demand refers to the ratio of the:
a. percentage change in price of a good in response to a percentage change in quantity demanded.
b. percentage change in price of a good to a percentage increase in income.
c. percentage change in the quantity demanded of a good to a percentage change in its price.
d. none of these.
c
Economics
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Which of the following is a reason why the money demand curve might shift?
a. an increase in the interest rate b. a change in the money supply c. open market purchases of bonds by the Federal Reserve d. changes in the required reserve ratio e. new methods of making payments that replace money
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Where does equilibrium occur in an income expenditure diagram? What would be the effect if production is at either on the left or right side of the equilibrium point?
Economics