Examlex
Which of the following is not true regarding a price-elastic demand curve?
A.Total revenue increases when the price falls.
B.The absolute value of the price elasticity is a fraction less than 1.
C.The absolute value of the price elasticity is greater than 1.
D.The percent changes in the quantity exceed the percent changes in the price for any small change in price.
Price Level
A measure of the average prices of goods and services in an economy at a specific time.
Money Supply
The aggregate of financial assets in an economy at a specific moment, which includes cash, coins, and the deposits in checking and savings accounts.
Quantity Equation
An equation that relates the quantity of money in an economy to the level of economic activity, typically framed as MV = PQ.
Price Level
A gauge for the typical prices of products and services in an economy at a certain time.
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