One of the most important determinants of a good's price elasticity of demand is
A) the profits of suppliers.
B) the numbers of buyers in the market.
C) the ease with which consumers can substitute other goods for that product.
D) the cost of producing the good.
C
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What will be an ideal response?
International financial transactions are most likely to affect the U.S. monetary base when
A) the United States is in recession. B) the United States is experiencing a severe inflation. C) the Fed tries to influence the foreign-exchange value of the dollar. D) interest rates in the United States are highly variable.
For a monopoly earning positive economic profits at the profit-maximizing output level, all of the following are true EXCEPT
A) P > ATC. B) P > MR. C) P > MC. D) P = MR.
If expectations are rational, the difference between the actual rate of inflation and the expected rate of inflation will be zero
a. True b. False Indicate whether the statement is true or false