According to the textbook, for most goods and services-foods, beverages, entertainment, etc.-the income elasticity of demand is:
A. larger in the short run than in the long run.
B. larger in the long run than in the short run.
C. about the same in the short run and in the long run.
D. is difficult to differentiate from the short run to the long run.
B. larger in the long run than in the short run.
You might also like to view...
When a firm has been granted a trademark, which grants legal protection against other firms using the name of the product that has been granted the trademark, the firm
A) does not have to worry about legally enforcing the trademark; this is the responsibility of the legal system. B) still faces the possibility that the name will become widely used and no longer associated with a specific company. C) still must apply for a copyright and a patent to ensure that no other firm will use the product's name. D) must spend an annual amount on advertising the product each year; the amount it must spend is negotiated by the firm and the government agency that grants the trademark.
Money demand is given by Md/P = 1000 + .2Y - 1000i. Given that P = 200, Y = 2000, and i = .10, real money demand is equal to
A) 1300. B) 1500. C) 260,000. D) 300,000.
Competitive firms consider private costs, but disregard external costs, when making their economic decisions
a. True b. False Indicate whether the statement is true or false
Some economists believe that monopolies are both inevitable and beneficial to society. They believe that monopolies are more efficient than competitive markets and generate lower prices. For these reasons they oppose _________ and advocate __________
a. antitrust laws; laissez-faire b. laissez-faire; antitrust laws c. nationalization; regulation d. regulation; nationalization e. antitrust laws; nationalization