When Calculating the Price Elasticity of Demand,we Assume That the Price

question 143

Multiple Choice

When calculating the price elasticity of demand,we assume that the price of the good changes while all other variables affecting

• A)demand except buyers' incomes remain constant
• B)demand except the population size remain constant
• C)demand and supply remain constant
• D)supply remain constant
• E)demand remain constant

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Definitions:

Time-Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Money

Any item that is generally acceptable to sellers in exchange for goods and services.

Present Value

A calculation of today's value of money to be received in the future or ongoing cash flows, based on a given rate of return.