The price elasticity of demand is defined as the magnitude of the
A) change in quantity demanded divided by the change in price.
B) change in price divided by the change in quantity demanded.
C) percentage change in quantity demanded divided by the percentage change in price.
D) percentage change in price divided by the percentage change in quantity demanded.
C
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Which of the following lowers the equilibrium price of a canoe?
A) an increase in the supply of canoes B) an increase in the demand for canoes C) an increase in the quantity of canoes supplied D) a decrease in the supply of canoes E) Both answers A and B are correct.
Which of the following correctly identifies a difference between land and capital?
A) Land can be owned or rented by a firm, whereas capital cannot be owned. B) Capital can be owned or rented by a firm, whereas land cannot be owned. C) Land is created, whereas capital is a naturally occurring resource. D) Capital is created, whereas land is a naturally occurring resource.