In general, a "big ticket item" such as a house or new car will
A) tend to have a more elastic demand than a lower-priced good.
B) tend to have an inelastic demand because spending on the item takes up a large share of the average consumer's budget.
C) tend to have an inelastic demand because it has many substitutes.
D) tend to have a more inelastic demand the more time that passes.
Answer: A
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In the above figure, starting at E3, if there is an increase in technology that causes a permanent increase in production capabilities
A) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0. B) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. C) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. D) aggregate supply would shift to SRAS1 and then return to SRAS0.
If real GDP in 2016 (using 2009 prices) is lower than nominal GDP of 2015, then
A) prices in 2016 are higher than prices in 2015. B) prices in 2016 are lower than prices in 2015. C) real GDP in 2016 is larger than real GDP in 2015. D) nominal GDP in 2016 equals nominal GDP in 2015.
When marginal revenue product of an input is less than its price, the producers should use less of the input
a. True b. False Indicate whether the statement is true or false
Which of the following is characteristic of a monopolistically competitive firm?
a. The firm faces an upward-sloping demand curve. b. The firm faces an inelastic demand curve. c. The firm faces a horizontal demand curve. d. The firm produces a differentiated product.