The demand for Dell laptops is more price elastic than the demand for laptops as whole. This is best explained by
a. There are fewer substitutes for Dell laptops than for laptops as whole
b. There are more substitutes for Dell laptops than for laptops as whole
c. Dell laptops are luxurious goods
d. Dell laptops are a necessity
b
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Dumping occurs when a foreign firm sells its exports at a lower price than it costs to produce them
Indicate whether the statement is true or false
Suppose you are on a committee seeking to increase revenue from your city's bus system. If demand is _______, you would recommend raising the fare
a. perfectly elastic b. elastic c. unitary elastic d. inelastic
The price of oranges falls. What happens in the market for apples, which are a substitute for oranges?
A) The equilibrium price falls and the equilibrium quantity rises. B) The equilibrium price rises and the equilibrium quantity falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.
The real balances effect suggests that
A. when prices are higher, you buy fewer because the marginal utility of a good is diminishing. B. when prices are higher, you buy more. C. when prices are higher, your buying power is less, so you buy less. D. when prices are higher, you buy less of what you originally wanted and use something else instead.