For many goods, the price elasticity of demand increases over time because
A) people's incomes tend to increase over time.
B) inflation increases all prices and incomes over time.
C) the ability to find substitutes for a good whose price has risen increases over time.
D) None of the above answers is correct.
C
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Suppose that the market for corn is perfectly competitive. If corn farmers are currently generating losses, then we would expect that in the long run the market
A. supply curve will shift to the left. B. supply curve will shift to the right. C. demand curve will shift to the right. D. demand curve will shift to the left.
People tend to wait until deadlines get close to work on projects in part because they believe that they can complete the projects in less time than it will actually take. Which findings from behavioral economics is this observation consistent with?
a. People tend to be time inconsistent and people tend to be overconfident. b. People tend to be time inconsistent but not that people tend to be overconfident. c. People tend to be overconfident, but not that people tend to be time inconsistent. d. Neither that people tend to be overconfident nor that people tend to be time inconsistent.
The transactions demand for money will increase when
A) the rate of interest increases. B) the price level falls. C) nominal Gross Domestic Product (GDP) increases. D) nominal Gross Domestic Product (GDP) decreases.
Approximately how much of the world's output does the United States produce?
A. 5 percent. B. 12 percent. C. 18 percent. D. 30 percent.