According to your text, there are substitutes for any scarce good,
A) but some demand curves are vertical.
B) but the elasticity of demand for most goods is zero.
C) but the law of demand only holds for inexpensive goods.
D) but it often takes time for consumers to seek out useful substitutes.
D
You might also like to view...
For the past 40 years the Federal Reserve has expressed policy in terms of a target value for:
A. open market operations. B. bank reserves. C. the Federal Reserve discount rate. D. the federal funds rate.
List and compare the four components of the expenditure approach to calculating GDP
What will be an ideal response?
Capital rationing
A) exists when a company sets an arbitrary limit on the amount of investment it is willing to undertake, so that not all projects with an NPV higher than the cost of capital will be accepted. B) generally does not permit a company to achieve maximum value. C) seems to occur quite frequently among corporations. D) All of the above
In evaluating the required rate of return for equity financing of a capital project, the Beta value is
A) the expected rate of growth in a firm's profits. B) the expected future value of a firm's stock. C) the volatility in the rate of return on a firm's stock compared with the volatility in the rate of return on a market portfolio of stocks. D) None of the above