GDP is equal to: the market value of all final goods and services produced within a country in a given period of time, Y, & C + I + G + NX.
Changes is nominal GDP reflect: both changes in prices and changes in the amounts being produced.
Changes in real G
Price Elasticity of Demand=(change in Quantity)/(sum of Qd/2)/(change in price)/(sum of prices/2)
OR Ep = (Percentage change in Qd)/(Percentage change in price)
How would you interpret an elasticity of -6.7? Answer: a 10% increase in the fee wi