Which of the following is a determinant of the price elasticity of demand for a product? I. The existence of substitute goods II. The percentage of a consumer's total budget devoted to purchases of that commodity
A) I only
B) II only
C) both I and II
D) neither I nor II
C
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
If real GDP is greater than nominal GDP for a particular year, then
A) production must have fallen between the current year and the base year. B) production must have increased between the current year and the base year. C) prices must have fallen between the current year and the base year. D) prices must have risen between the current year and the base year. E) prices must have fallen between the current year and the immediate past year.
When we add private benefits and external benefits together, the result is called:
A. production benefits. B. social benefits. C. public costs. D. network benefits.
Which of the following is likely to have the most price elastic demand?
a. lattés b. doctor's visits c. eggs d. natural gas