If the short-term own price elasticity for food is estimated to be ?0.4, then long-term own price elasticity is expected to be:
A. greater than -0.4 (less elastic).
B. ?0.4.
C. less than -0.4 (more elastic).
D. neither greater than, less than, nor equal to ?0.4.
Answer: C
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A maximum limit set on the amount of a specific good that may be imported into a country over a given period of time is called a
A. voluntary export restriction. B. nontariff barrier. C. quota. D. tariff.
If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon. If the price of chocolate sauce fell to $0.50 per can, consumers would purchase more chocolate sauce than if the price were $5 per can. These relationships illustrate the
a. law of supply. b. law of demand. c. difference between normal and inferior goods. d. difference between substitute and complement goods.
Which of the following statements pertaining to the yield curve is not true?
A. The yield curve can be flat or downward sloping depending on market conditions. B. The yield curve shows the difference in default risk between securities. C. Yield curves usually slope upwards. D. The yield curve shows the relationship among bonds with the same risk characteristics but different maturities.
At the current price of a good, Jessica's consumer surplus equals 12, Lauren's consumer surplus equals 14, and Isabel's consumer surplus is 4. By perfect discrimination, a monopolist could increase his profit by
A) 4. B) 12. C) 16. D) 30.