What is the price elasticity of demand and how is it measured?
What will be an ideal response?
The price elasticity of demand is a unit-free measure of responsiveness of the quantity demanded of a good to a change in its price when all other influences on buyers plans remain the same. To calculate the price elasticity of demand we divide the percentage change in quantity demanded by the percentage change in price.
Economics
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In the above table, if the firm sells 5 units of output, its total revenue is
A) $15. B) $30. C) $75. D) $90.
Economics
In the automobile insurance market, adverse selection occurs when
A) drivers with greater risks buy a policy with large deductibles. B) drivers with greater risks buy a policy with no deductibles. C) uninsured drivers drive recklessly. D) insured drivers drive recklessly.
Economics