Which of the following is the best example of a good that has inelastic demand?
a -diamond
b -movie ticket
c -boat
d -salt
Answer: d -salt
You might also like to view...
All economic models must involve simplifications because
a. economists would be unable to command high salaries if their models were so simple that anyone could understand them b. human behavior is very erratic and unpredictable c. reality is too complex to understand in its entirety, so we must reduce it to a level that we can understand d. they always try to duplicate all possible information and cover all possible variables that might influence decision making e. we must rely on value judgments and ignore reality
If the price of a candy bar increases from $1 to $1.50, the ____ will increase
a. producer surplus b. consumer surplus c. opportunity cost of producing a candy bar d. social marginal cost of producing a candy bar
Which statement about changes in the discount rate is true?
a. The discount rate is usually set lower than the federal funds rate to encourage borrowing. b. The discount rate is rarely changed because it has a huge impact on the money supply. c. The Fed can raise the discount rate to increase the money supply. d. Changes in the discount rate are seen as a signal of the Fed’s monetary policy intentions.
Monopoly producers face
A) many competitors producing the same product. B) only a few competitors producing the same product. C) at least one competitive producer of the same product. D) no competitive producers of the same product.