Explain why the demand for a particular brand of fast food tends to be more elastic than demand for all fast food.
What will be an ideal response?
One of the factors that affects the price elasticity of demand is the number of substitute goods available. For instance, a particular brand of hamburgers will face many substitutes, including not only other types of fast food but also other brands of hamburgers. If, however, the demand for hamburgers is broadly defined irrespective of different brands, the number of substitutes will be relatively small. Thus, the broader a market is defined, the less elastic is the demand.
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Use the following graphs for a perfectly competitive market in the short run to answer the next question.
Which of the following statements is true?
A. The firm is earning a normal profit. B. The firm should increase production in the short run. C. The firm is making economic profits. D. The firm is generating a loss.
The New York Yankees are playing the Boston Red Sox at Fenway Park. It is the bottom of the ninth inning, the score is tied 4-4, the bases are loaded, and there are no outs
Starting in the seats closest to the field, the crowd begins to stand and cheer , hoping that the Red Sox can drive in one more run and win the game. Describe the collective action problem that has developed in this situation.
In the balance of payments, any transaction that leads to a receipt by a resident of a country or its government is a(n)
A) asset. B) minus item. C) deficit item. D) surplus item.
The process through which an economy's production possibilities curve shifts outward is:
A. full-employment management. B. investment. C. resource renewal. D. out-resourcing.