Which statement best explains why demand for gasoline is inelastic?
a. Gasoline prices are currently very high.
a. There is no substitute available
c. Gasoline uses a small portion of a person's income.
d. People have already cut back their driving to the minimum.
Ans: a. Gasoline prices are currently very high.
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An increase in taxes
a. reduces income by more than the total fall in consumption. b. reduces income by the same amount as the total fall in consumption. c. reduces income and consumption by the same amount as taxes fall. d. reduces income by the amount of the initial fall in consumption.
The quintessential example of substitute goods would be
A. Ramen Noodles for a poor college student. B. the switching of Granny Smith for Golden Delicious apples. C. peanut butter and jelly for a young boy or girl. D. steak for someone who liked beef.
Refer to the information provided in Table 21.6 below to answer the question(s) that follow. Table 21.6
Refer to Table 21.6. The value for gross private domestic investment in billions of dollars is
A. 800. B. 900. C. 1,000. D. 1,100.
In which of the four oligopolistic markets below is there considerable price competition?
A. music production industry B. high-definition DVD industry C. stent industry D. airline industry