Luxury items tend to have ________ demand, and necessities tend to have ________ demand.
A. unit elastic; perfectly inelastic
B. relatively elastic; inelastic
C. perfectly elastic; perfectly inelastic
D. relatively inelastic; elastic
Answer: B
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When the consumption of a good creates an external benefit,
A) the marginal social cost curve lies below the marginal private cost curve. B) the marginal social benefit curve lies above the marginal private benefit curve. C) the quantity produced in an unregulated, competitive market is greater than the efficient quantity. D) None of the above answers is correct.
Alan puts $20,000 in an uninsured savings account at the Boston National Bank. Susie borrows $20,000 from the Boston National Bank, flies to a Central African country, and is never heard from again. Which of the following is true in this case? a. Alan will lose her $20,000
b. Alan will lose her $20,000 if she and Norma are related. c. Alan will lose her $20,000 if the First National Bank makes all of its loans to people who run off to South Pacific islands. d. Alan will not lose her $20,000 no matter what happens to the First National Bank. e. Alan will not lose her $20,000 unless the Fed fails
Given free mobility of people, wage differentials will contribute to long-term wage disparities among regions
Indicate whether the statement is true or false
The trade-off of saving the spotted owls in the Pacific Northwest was
A) the loss of salmon in the region. B) the increase in the number of marbled murrelets. C) the loss of logging activities by lumber companies. D) none.