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If the Percentage Change in the Price of a Good

question 94

Multiple Choice

If the percentage change in the price of a good and the percentage change in the quantity demanded of the good are both equal to 20%, then the price elasticity of demand for the good is _____.


Definitions:

Labor Market

The marketplace where labor services are offered and demanded, determining employment levels and wage rates.

Capital Equipment

Durable goods or assets used in the production of goods or services, often involving significant investment and a long use life.

Equilibrium Rental Price

The rental price at which the quantity of a property demanded by renters equals the quantity of the property supplied by landlords.

Price of Output

The amount of money that a producer receives for selling one unit of a good or service.

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