Goods that do not have close substitutes have downward-sloping demand curves
a. True
b. False
Indicate whether the statement is true or false
True
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A straight-line demand curve with negative slope intersects the horizontal axis at 200 tons per week. The point on the demand curve at which the price elasticity of demand is 1 corresponds to a quantity demanded
A) of 0 tons. B) of 100 tons. C) of 200 tons. D) that would be negative if a negative quantity demanded were possible.
Several countries in the world have failed to "converge" with industrialized countries. What does this mean about their economic growth rates? Explain why poorer countries have failed to "catch up", in terms of the pillars of economic growth. Are there any special problems facing these countries?
When a good is nonexcludable,
a. it is impossible or very costly to exclude nonpaying customers from receiving the good. b. individuals will have an incentive to become free riders. c. it will be difficult for a private firm producing the good to generate revenue sufficient to cover the cost of production. d. all of the above are true.
Suppose the market demand curve for a monopolist is given by P = 50 - 10Q. Then the marginal revenue curve is given by:
A. MR = 25 - 20Q. B. MR = 50 - 5Q. C. MR = 25 - 10Q. D. MR = 50 - 20Q