As the number of substitutes for a good increases, the absolute value of its own-price elasticity
a. stays the same
b. increases
c. decreases
d. the good becomes perfectly inelastic.
b
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Which of the following statements best describes an inferior good?
A) An inferior good is a good whose quantity supplied always exceeds the quantity demanded. B) An inferior good is a good whose demand decreases with an increase in consumers' income. C) An inferior good is a good that is sold at a subsidized price. D) An inferior good is a good that is rationed by the government.
The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity
If Light-U-Up is regulated and must follow an average cost pricing rule, it will produce ________ and sell at a price of ________. A) 200 kwh; 30¢ per kwh B) 200 kwh; 25¢ per kwh C) 300 kwh; 20¢ per kwh D) 400 kwh; 15¢ per kwh
If Stock A sometimes increases and sometimes decreases in value when Stock B increases in value at the same time, they are
A) negatively correlated. B) uncorrelated. C) positively correlated. D) random bets.
At the end of the production chain that a typical economy moves up along is
a. raw material b. agriculture c. hunting and gathering d. services e. manufacturing