Which of the following factors will make the demand for a product more elastic?
A) The product has no close substitutes.
B) A very small proportion of income is spent on the good.
C) A long time period has elapsed since the product's price changed.
D) The change in the product's price was unexpected.
C
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You put $75 in the bank one year ago and forgot about it. The bank sends you a notice that you now have $81 in your account. What interest rate did you earn?
a. 5 percent b. 6 percent c. 7 percent d. 8 percent
In Figure 35.1, what is the opportunity cost of motorcycles in the United States?
A. 2 DVD players per motorcycle. B. 1/2 of a DVD player per motorcycle. C. 1/3 of a DVD player per motorcycle. D. 1 DVD player per motorcycle.
Microeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economy's resources are idle.
Answer the following statement true (T) or false (F)
If a business decreased the price of its product from $10 to $9 when demand was price inelastic, then total revenues would:
A. be perfectly inelastic. B. remain unchanged. C. decrease. D. increase.