The Percentage Change in the Quantity Demanded of a Good

question 44

Multiple Choice

The percentage change in the quantity demanded of a good or service when its price changes by one percent is:

• A)price elasticity of demand.
• B)price elasticity of supply.
• C)cross-price elasticity of demand.
• D)income elasticity of demand.

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Definitions:

Positive Profit

A financial gain that occurs when the revenues received from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Scale of Operation

The size at which a company or factory operates, often impacting its production efficiency and costs.

Long Run

pertains to a time period in economics during which all factors of production and costs are variable, allowing for full adjustment to any change.

Diminishing Returns

A principle stating that as one input variable is increased, there will be a point at which the additions of output will begin to decrease, holding all other inputs constant.