For a particular good, an 8 percent increase in price causes a 12 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. There are no close substitutes for this good.
b. The good is a necessity.
c. The market for the good is broadly defined.
d. The relevant time horizon is long.
d
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Let C = 800 + 0.6y and I = 100. Assume no government or foreign sectors. If investment decreases by 40, then the value of the multiplier is
A) -2.5. B) -1.67. C) 1.67. D) 2.5.
Refer to above figure. Given a tariff of $3 per unit, what is the country's consumer surplus?
What will be an ideal response?
Which of the following would likely be traded in a monopolistically competitive market?
a. Electricity b. Airline Tickets c. Pizza d. Wheat e. Water
The purpose of an initial public offering is to
A. Borrow funds for investment and growth. B. See if there is a demand for a company's new product. C. Raise funds for investment and growth by selling shares of the company to the public. D. Change the membership of the board of directors.