Which of the following factors would indicate a less elastic demand?
A. The good represents a large fraction of the budget.
B. Demand is measured over a longer period of time.
C. There are few substitutes.
D. The price of the good is high.
Answer: C
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An inelastic demand indicates that
A) quantity demanded does not vary with changes in the price. B) relatively small changes in price lead to relatively large changes in quantity demanded. C) relatively large changes in price are required to obtain a relatively small change in quantity demanded. D) relatively large changes in quantity demanded lead to relatively large changes in price.
Relative prices describe the terms at which individual goods are exchanged for one another
a. True b. False Indicate whether the statement is true or false
Which statement about nontransaction deposits is true?
a. They must be converted before they can be used to make a payment. b. They are the same thing as demand deposits. c. Economists agree that they are forms of money. d. They are part of the M1 definition of money.
Special rights often granted to preferred stock include a preference for receiving dividends and for the distribution of assets if the corporation is liquidated. Select one: True False
Indicate whether the statement is true or false.