The demand for a product is relatively more elastic:
a. ?When it has few substitutes
?b. In the long-run
c. ?When the money spent on the product represents a small portion of a typical buyer's budget
d. ?When the product is broadly defined
Answer: In the long-run
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In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is an inferior good
a. The population increases and productivity increases. b. Income increases and the price of inputs decrease. c. The number of firms in the market decreases and income increases. d. Consumer preference increases and the price of a complement decreases. e. The price of a substitute in consumption decreases and the price of a substitute in production decreases.
A market structure in which the decisions of individual buyers and sellers have no effect on market price is
A) perfect competition. B) a short-run industry. C) a long-run industry. D) a market supply industry.
A lawsuit that joins together the similar concerns of many injured parties is
A. a class action lawsuit. B. unlikely to adequately compensate the plaintiff's attorneys when successful. C. a violation of the legal profession's code of ethics. D. a violation of the laws of most U.S. states.
Capitalism and free enterprise are common, and the United States
A. has just begun to move in that direction after years of central planning. B. has gone further in that direction than almost any other country. C. is becoming more “free,” but is not as capitalistic as many others. D. is considering a major change to “free up” its economy as many others have. E. is leading the move toward greater central planning and control.