Addictive substances such as tobacco have long-run demand that is more ______ than short-run demand. In other words, the consumption of addictive substances ______ price sensitive and raising prices ______ reduce consumption over time.
a. price elastic; is; will
b. price inelastic; is; will
c. price inelastic; is not; will not
d. price elastic; is not; will not
c. price inelastic; is not; will not
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A wholesale flower market is an example of ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
One of the agencies responsible for enforcement of antitrust policy is
A) the Trust Division of Congress. B) the Federal Trade Commission. C) the World Trade Organization. D) the Food and Drug Administration.
Inferior goods are those for which demand increases as
A) the price of a substitute falls. B) the price of a substitute rises. C) income decreases. D) income increases.
When your neighbor's dog barks all night long, this is an example of a negative externality
a. True b. False Indicate whether the statement is true or false