Why do consumers sometimes take a while to respond to price changes?
(A) Consumers need time to decide whether the good is a luxury or a necessity.
(B) Price changes do not affect consumers.
(C) Demand sometimes becomes less elastic over time.
(D) Consumers cannot find acceptable substitutes immediately.
Ans: (D) Consumers cannot find acceptable substitutes immediately.
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What are the characteristics of those who migrate to urban areas? What positive and negative effects does their leaving have on those who remain?
What will be an ideal response?
Purchases of stocks and bonds are examples of investment spending
a. True b. False
Hyperinflation:
a. Has no official definition. b. Usually ends with the nation abandoning its old currency and establishing a new one. c. Is good for most nations because it increaes their nominal GDPs. d. Is really a relic of the past with no current-day counterparts.
The years 2002 through 2007 can be described as a period of
A. falling output accompanied by increasing inflation. B. falling output accompanied by decreasing inflation. C. rising output accompanied by increasing inflation. D. rising output accompanied by decreasing inflation.