For which of the following types of goods would demand be most price-elastic?
a. necessities
b. goods with many substitutes
c. goods that require only a small portion of the buyer's budget
d. goods with vertical demand curves
e. goods with vertical supply curves
B
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The price elasticity of supply of laptop computers equals 1.5 if
A) a rightward shift of the demand curve for laptops causes the quantity supplied to increase by 1.5 percent. B) a rightward shift of the demand curve for laptops causes a 1.5 percent increase in their price. C) for every 1 percent that laptop prices increase, computer makers produce another 1.5 percent laptops. D) for every $1.00 that laptops increase in price, computer makers produce another 150 laptops.
To the stockholder, corporate stock represents
A) a source of fixed interest income. B) a loan. C) ownership. D) a guaranteed return of principal.
The marginal propensity to consume:
A. is the amount by which consumption increases when after-tax income increases by $1. B. is closely linked to the multiplier effect of government spending. C. is a value between 0 and 1. D. All of these are true.
When the average cost per unit falls as the number of units produced? rises, it is known as which of the? following?