What situation would make the demand for new cars relatively more price elastic?
a. Auto manufacturers have a difficult time hiring skilled workers.
b. Auto manufacturers find it easy to hire skilled workers.
c. Car buyers are prosperous, and they are seeking luxury cars.
d. There is a plentiful supply of used cars.
Ans: d. There is a plentiful supply of used cars.
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In the Cournot model of oligopoly, firms produce
a. the competitive quantity. b. the monopoly quantity. c. more than the monopoly quantity, but less than the competitive quantity. d. less than the monopoly quantity.
An "unemployment spell" is a period during which:
A. an unemployed individual leaves the labor force and then returns. B. an individual is continuously unemployed. C. the unemployment rate exceeds 15 percent. D. the unemployment rate is less than 10 percent.
If the market price is $5 and a perfectly competitive firm is producing 1,200 units and the marginal cost to produce the 1,200th unit is $4.53, which of the following is true?
A) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is positive. B) The firm is maximizing profit. C) The firm should decrease production to maximize profit. D) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is negative.
Portfolio investment means the
A) purchase of less than 20 percent of the shares of ownership in a company in another country. B) purchase of less than 50 percent of the shares of ownership in a company in another country. C) purchase of less than 80 percent of the shares of ownership in a company in another country. D) purchase of less than 10 percent of the shares of ownership in a company in another country.