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1. The price elasticity of demand is:
A. the responsiveness of price to changes in the quantity demanded of the product.
B. the responsiveness of quantity demanded to changes in the price of the product.
C. the change in the firm's total revenue when prices change.
D. exactly the same as the slope of the demand curve.
2. The demand curve for physician office visits is quite inelastic; therefore, a:
A. large increase in price causes quantity demanded to decrease by very little.
B. large decrease in price causes quantity demanded to decrease by a lot.
C. small increase in price causes quantity demanded to decrease by a lot.
D. small decrease in price causes quantity demanded to decrease by very little.
Does built in stability mean assume that non-discretionary changes will take place automatically, provide tax rates and systems in a place.
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