Ceteris paribus, which of the following causes demand to be more elastic with respect to price?
A. Shorter periods of time to adjust to a change in price.
B. Fewer substitutes.
C. A high ratio of price to income.
D. A steeper demand curve for a given price and quantity.
Answer: C
You might also like to view...
Refer to Table 2-5. What is Estonia's opportunity cost of producing one board foot of lumber?
A) 0.2 cell phones B) 5 cell phones C) 8 cell phones D) 32 cell phones
An incumbent monopolist producing more output than necessary might be able to keep potential rivals from entering
A) by flooding the market with products below its marginal cost in the short run. B) if learning by doing reduces marginal cost. C) if the long-run marginal cost can be lowered below the potential entrant's short-run marginal cost. D) All of the above.
The main purpose of the Fed is to:
a. serve as the bankers' bank for member banks. b. regulate interest rates. c. print Federal Reserve Notes. d. regulate financial institutions. e. maintain the proper functioning of our money system.
Brooke and Sandy both attend the same college and have the same expenses for tuition, books, and supplies. However, Brooke is a famous actress who could earn $2 million per year if she were not attending college whereas Sandy could earn $10,000 a year serving hamburgers if he were not attending college. It follows that the opportunity cost of attending college:
A. is greater for Brooke than for Sandy. B. for Brooke and Sandy cannot be compared. C. is greater for Sandy than for Brooke. D. is the same for both Brooke and Sandy.