Suppose a 5 percent increase in price causes a 25 percent decrease in quantity demanded. Which of the following statements is most likely true?
a. There are many substitutes for this good
b. There are few substitutes for this good.
c. The market for the good is a necessity.
d. The price change persists over a very short period of time.
a
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If a bond pays $50 a year to its holder and you buy it for $200, what is your interest rate?
What will be an ideal response?
Who is likely to be in favor of a country that would be a net-exporter if it moved from autarky to free trade?
A. Domestic producers B. Domestic consumers C. Foreign producers D. Foreign governments.
Why is oligopoly more difficult to model than competition or monopoly?
The incentive structure is a
A) system of rewards and punishments that individuals consider when making decisions. B) system determined by the federal government that gives certain states more federal funds. C) system of infrastructure in the United States that improves commerce. D) system of checks and balances in the government.