What is the definition of price elasticity of demand?
the responsiveness of quantity demanded of a product to a change in income of consumers
the responsiveness of quantity demanded of a product to a change in the price of a complementary product
the responsiveness of quantity demanded of a product to a change in the price of that product
the responsiveness of quantity demanded of a product to a change in the price of a substitute product
C
A German car producer estimates the price elasticity of demand (PED) for its cars is -2.0 . What can be concluded from this information?
its cars are price elastic
its cars are price inelastic
its cars are unitary elastic
its cars take time to produce
A
The price elasticity of demand (PED) of a good is -1.
What will happen to both demand and total revenue as price increases?
demand will fall and total revenue will not change
demand will fall and total revenue will rise
demand will rise and total revenue will not change
demand will rise and total revenue will rise
A