The demand for novels is _____________ than is the demand for science textbooks because __________________.
A. less price elastic; novels have more available substitutes.
B. more price elastic; novels have less available substitutes.
C. less price elastic; novels have less available substitutes.
D. more price elastic; novels have more available substitutes.
D. more price elastic; novels have more available substitutes.
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Answer the following statement(s) true (T) or false (F)
1. People have rational expectations when their predictions are correct more often than not. 2. Even when econometric equations predict very well, they can be entirely useless as guides to policy. 3. The standard deviation of a portfolio is exactly equal to the average standard deviations of the individual stocks. 4. A risk-averse individual always prefers the basket with the highest standard deviation when choosing among baskets with the same expected value. 5. Uninsurable risks is one reason why fair-odds insurance is not always available.
Which of the following statements is true?
A. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls. B. The marginal product is the output per unit of a variable input. C. Average variable cost and average fixed cost are U-shaped curves. D. When marginal productivity of a variable input is falling then marginal costs of production must be rising.
Explain how bank regulators seem to face a bit of a paradox regarding preventing monopoly power by banks and spurring competition.
What will be an ideal response?
Real money demand in the economy is given by L = 0.5Y - 2500i,where Y is real income and i is the nominal interest rate. In equilibrium, real money demand L equals real money supply M/P. Suppose that Y equals 1000 and the real interest rate is 0.02. At what rate of inflation is seignorage maximized?
A. 0.09 B. 0.05 C. 0.10 D. 0.075