Suppose many new brands start selling coffee in an economy, increasing the options that consumers have for coffee. This will result in:
a. a decrease in the elasticity of demand for every brand of coffee.
b. an increase in the elasticity of demand for every brand of coffee.
c. zero elasticity of demand for every brand of coffee
d. an infinite elasticity of demand for every brand of coffee.
b
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Consider the two graphs above. Suppose that allowable deductions from taxable business income are increased. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Which of the following is not an incentive bureaucrats have to increase the size of their budgets?
a. They can increase their income by having a higher budget. b. Increased budgets mean more power and prestige. c. Higher budgets are necessary to maximize scale efficiencies. d. A nice working environment is positively correlated with a higher budget.
How does government expenditure discourage some private investment?
What will be an ideal response?
What is the "good news" and the "bad news" about a higher value of the U.S. dollar?
What will be an ideal response?