Suppose the demand for a good is currently unit elastic over the relevant range. Then the producer of a substitute good goes out of business and stops producing it. As a result, demand over that range is now likely to be
a. Unit elastic
b. Relatively elastic.
c. Relatively inelastic.
d. Perfectly inelastic.
c
You might also like to view...
A minimum wage set above the equilibrium wage rate has no effect
Indicate whether the statement is true or false
If you have private information that you are a safer driver than your record indicates, you are likely to buy an insurance policy with
A) a higher than average deductible. B) a positive but lower than average deductible. C) an average deductible. D) no deductible.
Jen and Alica are both U.S. citizens. Jen opens a cafe in France. Alicia buys equipment from a company in Canada to use in her factory. Whose action is an example of U.S. foreign direct investment?
a. Jen's and Alica's b. Jen's but not Alicia's c. Alicia's but not Jen's d. Neither Anthony's nor Tom's.
The Federal Open Market Committees
A. include all seven members of the Board of Governors, the President, and ranking members of the Senate and Congress. B. conduct the most important parts of monetary policy. C. has complete control over the entire financial system. D. is responsible for the fiscal policy of the United States.