A product is likely to have a price elasticity of demand that exceeds 1 when
A) its price falls.
B) the percentage of income spent on it decreases.
C) it is a necessity.
D) it has close substitutes.
D
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Citizen voters are typically ignorant of many political issues because
A) information is not a good. B) information is only a free good. C) information is a scarce good. D) politicians have always conspired to keep voters misinformed.
Monopolistic competition is a market in which ________ firms produce ________ goods and services
A) many; identical B) many; differentiated C) few; differentiated D) few; identical
When market failure is present,
a. democratic political decision-making can be counted on to improve the efficiency of resource allocation. b. market allocation will achieve idealized economic efficiency. c. the conditions implied by idealized efficient allocation of resources will be absent, but it does not follow that political action will improve the situation. d. democratic political decision-making will never be able to improve the efficiency of resource allocation.
Figure 7.4
The above figure represents the marginal utility per dollar for candy bars and oranges for Sophia. The price of each product is $0.50, and Sophia has a budget of $4.Refer to Figure 7.4. If Sophia bases her choice on cognition, she will purchase ________ candy bars and ________ oranges to maximize utility.
A. 3; 5 B. 6; 2 C. 9; 0 D. 1; 5