In the above figure, through which range would the demand for this good be most inelastic?
A. B-E
B. G-H
C. A-B
D. E-F
Answer: B
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Which of the following is an argument in favor of trade liberalization?
(a) Increased investment. (b) Infant industry. (c) Fluctuating export earnings. (d) Increased government revenue.
If the income elasticity of demand is less than 1.0, it means it is an inferior good
a. True b. False Indicate whether the statement is true or false
The effect of a rise in peoples' incomes on equilibrium price and quantity of Florida orange juice is to
a. increase equilibrium price and quantity b. decrease equilibrium price and quantity c. increase equilibrium price and decrease equilibrium quantity d. increase equilibrium quantity and decrease equilibrium price e. decrease equilibrium price and increase equilibrium
Two goods are considered substitutes only if
a. a decrease in the demand for one leads to a decrease in the supply of the other b. an increase in the demand for one leads to a decrease in the supply of the other c. an increase in the price of one leads to an increase in the demand for the other d. a decrease in the price of one leads to an increase in the demand for the other e. a decrease in the supply of one leads producers to switch to production of the other