Which of these has the most elastic demand?
A. Filet Mignon steak
B. Bread
C. Heart medicine
D. Insulin (diabetes medicine)
A. Filet Mignon steak
You might also like to view...
In a perfectly competitive market:
A) the long-run market price is equal to the average fixed cost of the industry. B) the long-run market price is less than the minimum average cost of the industry. C) the long-run market price is more than the minimum average cost of the industry because of free entry and exit of firms. D) the long-run market price is equal to the minimum average cost of the industry because of free entry and exit of firms.
The figure above shows the market for umbrellas in Sunville. When the market for umbrellas in Sunville is in equilibrium, what is the producer surplus?
A) $3,000 B) $1,000 C) $10 D) $600
The representative consumer acts competitively
A) when he or she can haggle for a lower price. B) when he or she is a price-taker. C) when he or she is a price-maker. D) if the consumer is large relative to the size of the market.
Which of the following can create demand-pull inflation?
A. Excessive aggregate spending. B. Sharply rising oil prices. C. Higher labor costs. D. Recessions and depressions.