Everything else held constant, the greater the number of close substitutes there are for a good, the smaller the price elasticity of demand for that good
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
GDP is supposed to measure the goods ________ the United States
A) purchased in B) produced in C) exported to D) imported to
If traders in a market have rational expectations, then
A) the price of an asset equals its fundamental value. B) prices of riskier assets are higher than prices of less risky assets. C) past prices of assets do not affect market participants' expectations of future asset prices. D) they make use of less information than they would if they had adaptive expectations.
The above figure shows the market for steel ingots. What is the change in consumer surplus if the market switches from competitive equilibrium to social optimum?
A) $625 B) $1250 C) $1875 D) $2500
The gross public debt is the
A) amount of U.S. paper currency and coins in circulation. B) difference between current government expenditures and tax revenues. C) ratio of past deficits to past surpluses. D) total of all accumulated deficits and surpluses.