Which of the following is NOT a factor that determines the price elasticity of demand?
A. the existence of substitutes
B. the percentage of a consumer's total budget spent on the good
C. the length of time allowed for adjustments to change in the price of the commodities
D. the amount that suppliers have made available
Answer: D
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Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so, how?
What will be an ideal response?
An investment tax credit effectively ________ the user cost of capital, and thus ________ gross investment
A) lowers, raises B) lowers, lowers C) raises, raises D) raises, lowers
Under the kinked demand curve model, a small increase in marginal cost will lead to
A) an increase in output level and a decrease in price. B) a decrease in output level and an increase in price. C) a decrease in output level and no change in price. D) neither a change in output level nor a change in price.
Price controls would ordinarily be used to increase rather than decrease prices of depletable resources.
Answer the following statement true (T) or false (F)