A lower price elasticity of demand coefficient occurs when:
a. many substitutes exist.
b. the quantity demanded is more responsive.
c. few substitutes exist.
d. the market is broadly defined.
c
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?Refer to Exhibit 4-3. The University Theater faces market demand curve D0 and has begun charging $10, up from $5, for tickets for Friday and Saturday night shows. As a result, students have
A. increased their demand for tickets to Q4. B. increased their quantity of tickets demanded to Q4. C. decreased their demand for tickets to Q1. D. decreased their quantity of tickets demanded to Q1.
Suppose Christina just saw an advertisement on television for an antidepressant, but it has been a long time since James saw one. According to the availability heuristic:
A. Christina and James are likely to think that depression is equally common. B. Christina is likely to think that depression is more common than James. C. James is likely to think that depression is more common than Christina. D. Christina and James are equally likely to think that people recover from depression.
As the amount of capital to laborers increases, labor productivity diminishes.
Answer the following statement true (T) or false (F)
A production possibilities frontier for two outputs is drawn assuming that:
a. opportunity cost is fixed, but the quantity and quality of resources changes. B. both outputs use the same quantity of each resource, but the technology differs. C. the amount of resources currently available for production is fixed. D. the technology available can only be applied to producing one of the outputs.