Elasticity Is an Attractive Measure of Comparative Static Responses for All

question 46

Multiple Choice

Elasticity is an attractive measure of comparative static responses for all of the following reasons except, elasticities:

• A)relate changes in price to changes in total revenue.
• B)are directly observable.
• C)are units- free.
• D)relate %- changes in one variable to %- changes in other variables.

---

Definitions:

Assets

Resources owned or controlled by a company, which are expected to provide future economic benefits.

Liabilities

financial obligations or debts that a business needs to settle in the future, such as loans, accounts payable, and mortgages.

Withdrawals

Amounts taken from a business by the owner for personal use.

Assets

Resources owned by a business or individual with economic value or expected to provide future benefits.