The price elasticity of demand for a good measures the responsiveness of:
A. price to a 1 percent change in the quantity demanded of that good.
B. price to a 1 percent change in the demand for that good.
C. quantity demanded to a 1 percent change in price of that good.
D. demand to a 1 percent change in price of that good.
Answer: C
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The curve in the above figure will shift to the right when
A) the price level falls. B) the proportion of the population that is elderly increases. C) population falls. D) technology increases.
Refer to Scenario 7.8 below to answer the question(s) that follow. SCENARIO 7.8: A swimming pool cleaning company has the following production possibilities. With one, two, three, and four workers, the company can clean 5, 12, 17, and 20 pools per day, respectively. Refer to Scenario 7.8. The average product of labor with four workers is
A. 3. B. 3.3. C. 5. D. 13.5.