Author Question: Two reasons why valuing goods at their market prices is different than valuing them at their factor ... (Read 116 times)

james · **on:** Jun 29, 2018

Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include

A) depreciation and investment.
B) exports and imports.
C) personal taxes and corporate taxes.
D) indirect taxes and subsidies.

Question 2

Suppose the quantity of gasoline is measured in gallons and the price of gasoline is measured in dollars. The price elasticity of demand is 0.67.

If the price of gasoline was now measured in cents rather than dollars, the price elasticity of demand would now be A) 0.0067.
B) 0.67.
C) 6.7.
D) 67.0.