The demand for a good is less price elastic
A) if closer substitutes are available.
B) if the good is a luxury rather than a necessity.
C) if the share of the good in the average consumer's budget is smaller.
D) in the long run than in the short run.
C
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In the income-expenditure model, equilibrium output is the level of output at which the 45-degree line intersects the planned expenditures line. Explain why this output level is an equilibrium level
Illustrate your answer with a diagram of the income-expenditure model.
When is the Department of Justice less likely to allow a merger?
What will be an ideal response?
Supplier power tends to be low when
a. The supplier provides non-critical inputs b. The supplier provides homogenous inputs c. Both A&B d. None of the above
One could argue that GDP is not a good measure of the standard of living in a nation because it ________.
A. excludes payments for pollution control equipment B. does not account for the size of the population C. does not account for the cost of police protection D. includes the cost of health insurance