Price elasticity of demand measures the:
A. slope of the demand curve.
B. sensitivity of quantity demanded to changes in the price of substitute goods.
C. sensitivity of price to changes in the quantity demanded of substitute goods.
D. sensitivity of quantity demanded to changes in price.
D. sensitivity of quantity demanded to changes in price.
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In the above figure, if a single-price monopolist maximized its profit, the deadweight loss in the market is equal to the area
A) ace. B) acg. C) ecg. D) bch.
Which of the following is true of a tariff?
a. It is a tax levied by the government on domestic production of goods and services. b. It is a quantitative restriction on imports imposed by the government. c. It is a monetary benefit received by exporters from the government. d. It is a monetary benefit received by importers from the government. e. It is a tax on import and export levied by the government.