"The fewer the number of substitutes for a product, the more elastic the demand for that product." Is the previous statement true or false?
What will be an ideal response?
The statement is false. The greater the number of substitutes, the more elastic the demand for that product. Conversely, the fewer the number of substitutes, the less elastic (the more inelastic) the demand for that product.
You might also like to view...
A set of ideas about the economy that have been organized in a logical framework is called
A) empirical analysis. B) a methodology. C) economic theory. D) data development.
A student has a chance to see Taylor Swift in concert. The student also has a major economics exam in the morning. If the student goes to the concert: a. she may receive a lower grade on the economics exam
b. the opportunity cost of the concert includes the value of the time that would otherwise have been spent studying. c. the decision involves a tradeoff. d. all of the above are correct.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). b. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. The real risk-free interest rate rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). d. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The drafters of the US Constitution, such as Madison, were particularly worried about:
a. the possibility of truly democratic elections b. violations of the Bill of Rights c. the Fifth Amendment d. not enough people voting e. protecting the interests of a minority from the majority