The demand for good X will be more elastic than the demand for good Y when
A. good X accounts for a larger percentage of a typical consumer's budget than good Y.
B. consumers have more time to adjust to a change in the price of good X than they have time to adjust to a change in the price of good Y.
C. good X has fewer substitutes than good Y.
D. both b and c
E. all of the above
Answer: B
You might also like to view...
In the above figure, a decrease in the real interest rate will result in a movement from point E to
A) point F. B) point G. C) point H. D) point I.
In the equilibrium version of the classical model, the velocity of money
a. depends on the real rate of interest. b. depends on the level of employment. c. is equal to the Cambridge k. d. is stable in the short run.
According to the graph shown, if the economy decides to impose a tariff, the government can expect to raise how much in government revenues?
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. $19,500.
B. $27,000.
C. $34,500.
D. $37,500.
Refer to the normal-form game of advertising shown below.Firm AFirm B??AdvertiseDo Not Advertise?Advertise$0,$0$175,$10?Do Not Advertise$10,$175$125,$125Suppose there is a 90 percent chance that the advertising game depicted in Figure 10-17 will end next period. The collusive agreement {(not advertise, not advertise)} is:
A. sustainable since $11.11 > $50. B. sustainable since $175 < $138.89. C. unsustainable since $11.11 > $50. D. unsustainable since $175 < $138.89.