The demand for a specific brand of corn flakes cereal is likely to be:
A. less price elastic, because the specific brand is a unique product.
B. very price elastic, because there are many close substitutes available.
C. very price elastic, because that specific brand is a unique product.
D. less price elastic, because there are many close substitutes available.
Answer: B
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The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, at the equilibrium quantity, the marginal private cost is
A) zero. B) $14,000. C) $19,000. D) $16,000.
If the marginal tax rate is equal to the average tax rate as taxable income increases, the tax structure is
A) proportional. B) unfair. C) progressive. D) regressive.
The percentage change in quantity demanded divided by the percentage change in income is the formula for:
a. cross-price elasticity of demand. b. income elasticity of demand. c. elasticity of savings. d. wage elasticity of labor supply.
You have read that the free rider problem affects equilibrium in a public good context. Explain how this situation can be modeled as a prisoner's dilemma game.
What will be an ideal response?