There are several reasons why demand curves may become more elastic. Among them are
a. the market becomes more monopolistic and cross elasticities approach zero
b. the goods become less differentiated and more firms enter the industry
c. consumers have fewer substitutes and firms drop out of the industry
d. industry demand increases and consumers increase spending
e. the existence of a natural monopoly and an increase in fixed costs
B
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The paper currencies of the U.S. are also called
A. U.S. government notes. B. Federal Reserve notes. C. Treasury bills. D. Treasury bonds.
Who decides whether a movie is going to be a blockbuster? How do you think the creation of a blockbuster movie influences what, how, and for whom goods and services are produced?
What will be an ideal response?
A monopolistically competitive industry is like a purely competitive industry in that:
A. nonprice competition is a feature in both industries. B. firms in both industries face a horizontal demand curve. C. each industry produces a standardized product. D. neither industry has significant barriers to entry.
If demand is elastic, a price reduction will lead to an increase in total revenue.
Answer the following statement true (T) or false (F)