The price elasticity of demand is equal to
A) the percentage change in quantity demanded divided by the percentage change in price.
B) the change in quantity demanded divided by the change in price.
C) the percentage change in price divided by the percentage change in quantity demanded.
D) the value of the slope of the demand curve.
A
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Which of the following is not a primary cause of business cycle fluctuations, according to real business cycle theory?
A) A change in the production function B) A change in the size of the labor force C) A change in the money supply D) A change in the real quantity of government purchases
Ice cream can be frozen. In the short run the magnitude of the own price elasticity of demand for ice cream:
A) is higher than in the long run. B) is lower than in the short run. C) is the same as in the long run. D) does not depend on the fact that ice cream can be frozen.