Which of the following is NOT a determinant of the price elasticity of demand?
A) the number of producers of the good
B) the number of substitutes available to buyers
C) the time consumers have to adjust to a price change
D) expenditures on the item as a percentage of a consumer's total budget
Answer: A
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Cyclical unemployment increases during recessions
Indicate whether the statement is true or false
In the modern Keynesian model, over much of its range the short-run aggregate supply (SRAS) curve is
A) horizontal. B) vertical. C) upward sloping. D) downward sloping.
Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer contracts with suppliers regardless of ISO 900 . status d. Smokers get the worse life insurance rates as non-smokers
When a consumer experiences a price decrease for an inferior good, if the income effect is
a. less than the substitution effect, the demand curve will be downward sloping. b. greater than the substitution effect, the demand curve will be upward sloping. c. less than the substitution effect, the demand curve will be upward sloping. d. both a) and b) are correct.