To determine the price elasticity of demand, we
A) need information on consumers' incomes.
B) need to know how much is available.
C) compare the percentage change in the quantity demanded to the percentage change in the price.
D) compare the change in the quantity to the change in price.
E) divide the quantity by the price.
C
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Real GDP definitely increases if
A) the AS curve shifts leftward and the AD curve does not shift. B) the AD curve shifts leftward and the AS curve shifts rightward. C) both the AD curve and the AS curve shift rightward. D) both the AD curve and AS curve shift leftward. E) potential GDP decreases so that real GDP exceeds potential GDP.
Refer to Scenario 19.4 below to answer the question(s) that follow. SCENARIO 19.4: Suppose demand for widgets is given by the equation P = 10 - 0.25Q. Originally, the price of the good is $5 per unit. When a tax of $1 per unit is imposed, the price of the good rises to $6 per unit.Refer to Scenario 19.4. What is the excess burden of the tax?
A. $2 B. $18 C. $32 D. $50