The demand for a good is more price elastic
A) if closer substitutes are available.
B) if the good is a necessity rather than a luxury.
C) if the share of the good in the average consumer's budget is smaller.
D) in the short run than in the long run.
A
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A wholesale flower market is an example of ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
In the Keynesian model, money demand is positively related to
A) income. B) interest rates. C) saving. D) aggregate supply.
Expansionary policy only leads to inflation, but does not raise output in ________
A) traditional Keynesian theory B) new Keynesian theory C) real business cycle theory D) traditional Keynesian, new Keynesian and real business cycle theory
For which of the following market structures is it assumed that there are barriers to entry?
A) Perfect competition B) Monopolistic competition C) Monopoly D) all of the above E) B and C only