After reading the chapter on elasticity, which of the following statements do you know is not true?
a. Price elasticity of demand for basic foods is low.
b. When price elasticity of demand is very high, the seller can raise price with confidence knowing that only a few buyers will leave the market
c. The availability of close substitutes affects the elasticity of demand for a good.
d. Goods that are low priced usually have price elasticities of demand that are low as well.
e. Elasticities increase as the price of the good increases.
B
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The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, what is true?
A) The lowest wage for which someone is willing to work is $18 an hour. B) The quantity of jobs increases to 400. C) The lowest wage for which someone is willing to work is $20 an hour. D) 200 workers are employed. E) The quantity of jobs demanded is more than the quantity supplied.
If you will receive $5,000 two years from today, what is its present value if the discount rate is 5 percent?
a. $5,025 b. $4,500 c. $3,429 d. $4,535 e. $4,762
The price of gold is $300 per ounce in New York and 435 Canadian dollars per ounce in Toronto, Canada. If the law of one price holds for gold, the nominal exchange rate is ________ Canadian dollars per U.S. dollar.
A. 1 B. 1.45 C. 0.690 D. 0.333
When the Fed sells $100 million of securities to a commercial bank, the
A) monetary base increases. B) money supply increases. C) bank's reserves decrease. D) required reserve ratio decreases. E) bank's reserves do not change.