Which of the following factors would indicate a less elastic demand?
A. The good represents a large fraction of the budget.
B. Demand is measured over a shorter period of time.
C. The price of the good is low.
D. New substitutes are created.
Answer: B
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Which of the following tools is used most often by the Fed for changing the supply of money?
A. Open market operations B. Reserve requirement C. Discount window D. Interest rate
What percentage of GDP comes from agriculture in the high-income economies of the world?
a. 1 percent b. 2 percent c. 3 percent d. 4 percent
The Herfindahl-Hirschman Index measures
a. concentration in the industry. b. industrial average output. c. economies of scale. d. consumer confidence.
When the price of coffee increases from $4 to $5 per pound, Elizabeth’s demand for coffee ______.
a. increases by 5 pounds
b. increases by 10 pounds
c. decreases by 5 pounds
d. decreases by 10 pounds