The demand for a specific brand of corn flakes cereal is likely to be:
A. very price elastic, because there are many close substitutes available.
B. less price elastic, because there are many close substitutes available.
C. very price elastic, because that specific brand is a unique product.
D. less price elastic, because the specific brand is a unique product.
A. very price elastic, because there are many close substitutes available.
You might also like to view...
If 1-year interest rates for the next three years are expected to be 1, 1, and 1 percent, and the 3-year term premium is 1 percent, than the 3-year bond rate will be
A) 1 percent. B) 2 percent. C) 3 percent. D) 4 percent.
The difference between the total amount that producers would have been willing to accept for the total quantity produced in a market and what they actually received at the market clearing price is called
A) production excess. B) excess demand. C) market surplus. D) producer surplus.
Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information we can conclude that:
A. the supply of clothing has grown faster than the demand for clothing. B. demand for clothing has grown faster than the supply of clothing. C. the supply of and demand for clothing have grown by the same proportion. D. there is no way to determine what has happened to supply and demand with this information.
Each of the following has been typical of Japanese trading policies except
A. they targeted the large American consumer market. B. the Japanese market was closed to American producers. C. they went head to head against American companies, underselling American TV and other electronic producers. D. high tariffs.