When interpreting the Ed value as either elastic or inelastic, we look at the
A. percent change in price.
B. Ed coefficient with its negative sign.
C. absolute value of the Ed coefficient (dropping the negative sign).
D. percent change in quantity.
Answer: C
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Command-and-control legislation, as compared to incentive-based regulation:
a. encourages the use of comparative advantage in the short run, and the development of new technology in the long run. b. encourages the use of comparative advantage in the short run, but discourages the development of new technology in the long run. c. discourages the use of comparative advantage in the short run, but encourages the development of new technology in the long run. d. discourages the use of comparative advantage in the short run, and discourages the development of new technology in the long run.
Firms in an oligopoly market tend to be ____ and have ____ barriers to entry
a. large (relative to the total market); high. b. large (relative to the total market); low. c. small (relative to the total market); high. d. small (relative to the total market); low.