The price elasticity number for necessities will be greater than 1.
Answer the following statement true (T) or false (F)
False
If a product is a necessity, then demand is inelastic and the elasticity number will below 1. For example, if the price of cigarettes rises by 10 percent and quantity demanded falls by only 5 percent, then the elasticity number is 0.5 > 1.0, indicating inelastic demand.
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The problem of _____ can arise when a seller cannot obtain reliable information from buyers
a. moral hazard b. adverse selection c. lemons problem d. incomplete information
The Phillips curve shows the relationship between inflation and what?
a) The balance of trade b) The rate of growth in an economy c) The rate of price increases d) Unemployment
The revenue earned by the government in allocating quota licenses through resource-using application procedures is approximately equal to the revenue it would earn from a tariff that resulted in the same import quantity.
Answer the following statement true (T) or false (F)
Benefits from international trade are based on the following differences, except:
A. In resource endowments B. In technological capabilities C. In product quality and other attributes D. In income levels