Which of the following statements is correct?
A) Arc elasticity of demand is the same as the slope of the demand curve.
B) Arc elasticity of demand only applies to a nonlinear demand curve.
C) Point elasticity of demand is measured at each point along a demand curve.
D) Point elasticity of demand is measured between two adjacent points on a demand curve.
C
You might also like to view...
In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to
A. shift long-run aggregate supply to the left. B. shift aggregate demand to the right. C. shift short-run aggregate supply to the left. D. shift short-run aggregate supply to the right. E. shift aggregate demand to the left.
In the wake of the financial crisis of 2007-2009, the debt-to-GDP ratio has risen in many countries around the world. Should the expenditures enabled by this debt be considered government consumption or government investment?
What will be an ideal response?