Which of the following factors would indicate a less elastic demand?
A. The good represents a large fraction of the budget.
B. Demand is measured over a longer period of time.
C. There are few substitutes.
D. The price of the good is high.
Answer: C
You might also like to view...
The benefits of net capital inflows to a country include all of the following except:
A. interest and dividend payments owed to foreign investors. B. a potentially higher growth rate. C. a higher rate of investment in new capital. D. a larger pool of total savings.
The MRP of labor will shift to the left if
A) labor productivity increases. B) labor productivity decreases. C) wages increase. D) wages decrease.
Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity
a. True b. False Indicate whether the statement is true or false
Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. 
Suppose Lee and Cody enter into a binding non-aggression agreement. As part of that agreement, they negotiate a fine that Cody would have to pay to Lee if Cody chooses aggression after Lee chooses cooperation. For the fine to be effective, it would have to be:
A. at least 15. B. equal to 25. C. less than 15. D. equal to 40.