Which of the following is associated with inelastic demand?
a. a limited amount of time for consumers to respond to a price change
b. availability of many close substitutes
c. large percentage of income spent on the good in question
d. all of the above
a
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Most economists generally argue ________ trying to block technological advances because these technological advances ________.
A. in favor of; increase wage inequality B. against; are necessary for improved standards of living C. in favor of; cause the economy to grow to rapidly D. against; promote wage equality
If GDP = $300 billion and velocity = 1.5, then the money supply is
A) indeterminate. B) $200 billion. C) $300 billion. D) $450 billion.
With respect to the classical labor market analysis, it is not assumed that
a. firms have complete information with respect to relevant prices. b. workers negotiate for unique wages individually. c. money wages adjust with a short lag. d. All of the above e. None of the above
An expansionary monetary policy causes interest rates to _____________________, and eventually United States net exports ____________ causing the AD curve to shift to the ___________________
A) fall; rise; right B) fall; fall; left C) rise; rise; right D) rise; fall; left E) rise; rise; left