If there are many close substitutes available for a good, its elasticity of demand will be higher.
Answer the following statement true (T) or false (F)
True
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Samantha goes to college to become an engineer. This is an example of an
A) investment in physical capital. B) investment in human capital. C) increase in entrepreneurship D) increase in labor.
Refer to Figure 3-2. A decrease in the expected future price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Since the early 1980s, the real exchange rate between U.S. goods and Japanese goods has climbed, relative to the nominal exchange rate (yen/U.S. dollar). What does this imply about economic conditions in the two countries?
What will be an ideal response?
An increase in the interest rate leads to:
a. an increase in planned inventories. b. an increase in GDP. c. an increase in unplanned inventories. d. an increase in consumption. e. none of the above.