Which of the following statements about the price elasticity of demand is correct?
a. The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases.
b. Price elasticity of demand reflects the many economic, psychological, and social forces that shape consumer tastes.
c. Other things equal, if good x has close substitutes and good y does not have close substitutes, then the demand for good x will be more elastic than the demand for good y.
d. All of the above are correct.
d
You might also like to view...
Refer to Scenario 17.5. If a fixed wage of $3000 is given the individual worker, the result will be
A) low effort 75% of the time. B) low effort 25% of the time. C) low effort. D) high effort. E) high or low effort depending on whether the worker thinks the $3000 is an acceptable wage.
M2 is the narrow measure of the money supply
a. True b. False Indicate whether the statement is true or false
Althea is a student in your class. Althea wears a perfume called Essence of Efficiency. Bob really likes the scent of this perfume, and is disappointed on days when Althea doesn't wear it. Cathy is mildly allergic to this perfume. Her eyes water and her nose becomes runny when Althea comes to class wearing this perfume. Cathy is fine otherwise. This is a story about
a. too much perfume being produced b. too little perfume being produced c. an incomplete market d. inadequate allocation of responsibility e. market failure
Which of the following statements about unemployment that is indicative of sectoral shifts hypothesis is not correct?
A. Unemployment spells will be longer the more firm-specific and industry-specific skills are. B. When an industry experiences a negative shock, those workers who become unemployed will eventually become employed in new industries after they adjust their skills to match the needs of new, growing industries. C. Unemployment rates for sectoral shifts reasons will vary by industry and occupation. D. When an industry experiences a negative shock, those workers who become unemployed will eventually become employed in new industries when the new industries adjust their needs to the existing skills of the unemployed. E. All of these are indicative of the sectoral shifts hypothesis.