Suppose the price elasticity of demand for iPods is inelastic. What would you expect about the demand elasticity for workers producing iPods? Explain
What will be an ideal response?
Because the demand for workers producing iPods is derived from the demand for iPods, the demand elasticity for the workers is positively related to the price elasticity of demand for the final products. This means that the demand elasticity for workers producing iPods is also inelastic.
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A presidential candidate once famously said about a particular policy: "I voted for it before I voted against it." How might such a statement make sense in the context of sophisticated voting along agendas.
What will be an ideal response?
One reason that education has external benefits is that
A) knowledge has diminishing marginal productivity. B) education creates job opportunities for teachers. C) education creates better citizens. D) property owners pay taxes to support the school system.
A good will have a more elastic demand, the
a. greater the availability of close substitutes. b. more broad the definition of the market. c. shorter the period of time. d. more it is regarded as a necessity.
Which of the following is a characteristic of a monopoly market? a. A large number of buyers and sellers. b. Mutual interdependence
c. Free entry and exit. d. A product with no close substitutes.