According to a study of the U.S. demand for alcoholic beverages, the price elasticity of demand for beer is -0.30. Which of the following could explain why the price elasticity of demand for beer is low?
A) More and more people are switching to wine and cocktails rather than beer.
B) Beer is an inferior alcoholic beverage.
C) There are only a few major suppliers of beer.
D) The price of beer is relatively low and for many people it is a habit forming product.
D
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When playing a game, you need to
A) anticipate the moves others might be making. B) choose a strategy based on the move you anticipate from your rival. C) both A and B D) neither A nor B
A 10 percent increase in income increases the quantity of orange juice demanded from 19,200 to 20,800 gallons. The income elasticity of demand for orange juice is
A) 0.5. B) 0.8. C) 1.0. D) 1.2.
The cross-price elasticity of demand between rifles and bullets is likely to be
a. negative because the goods are complements b. positive because the goods are complements c. negative because the goods are substitutes d. positive because the goods are substitutes e. 0 because the goods are not substitutes
Policymakers have the ability to affect:
A. the economic incidence of a tax burden on the buyer and seller. B. the relative economic incidence of the tax burden on the rich and the poor. C. whether the buyer or seller will bear the actual burden of the tax. D. how the tax is shared between buyer and seller.