The Percentage Change in the Quantity Demanded of Film Divided

question 208

Multiple Choice

The percentage change in the quantity demanded of film divided by the percentage change in the price of cameras indicates:

• A) the price elasticity of demand for film.
• B) the price elasticity of demand for cameras.
• C) the price elasticity of supply for film.
• D) the price elasticity of supply for cameras.
• E) nothing, because the two goods fall into the broadly defined category of photographic equipment.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate cost of living changes.

Market Basket

A selected group of goods and services used to track inflation and other economic indicators through price changes.

Base Year

A specific year against which economic growth is measured, serving as a standard point of comparison for real economic calculations such as GDP.