Which of the following is a determinant of the price elasticity of demand for an item?
A. the percentage of a consumers budget allocated to expenditures on the item
B. the availability of a close substitute for the item
C. the amount of time available to adjust to a change in the price of the item
D. All of these are correct.
Answer: D
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Refer to Table 19-12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is
A) 2013. B) 2014. C) 2015. D) 2016.
If the simplified technology costs $2 million to develop, what is the expected gain from developing the voice activated software
a. $5million b. $6million c. $7million d. $10million
When the market price is set above the equilibrium price:
A. the market is not efficient. B. total surplus is not maximized. C. consumer surplus is decreased. D. All of these are true.
If, at the point where MR = MC, the firm incurs losses, in the short run the firm should:
a. shut down. b. increase output. c. decrease output. d. continue at its current output if P > AVC. e. continue at its current output if P > ATC.