If the price-elasticity coefficient for a good is .75, the demand for that good is described as:
A. Normal
B. Elastic
C. Inferior
D. Inelastic
D. Inelastic
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Psychological incentives:
A. can serve as commitment devices. B. are not important in non-economic settings. C. never serve as commitment devices. D. are not important in economic settings.
Who has a higher bargaining power if the demand for the good being transacted is price-elastic?
What will be an ideal response?
The precipitous fall in stock prices between March 2000 and December 2002
A. undercut political support for partial privatization of Social Security. B. caused the government to increase Social Security payments. C. emboldened those in favor of partial privatization of Social Security. D. greatly affected the payouts associated with Social Security.
When a firm is experiencing diminishing returns:
A. average cost is always increasing. B. average cost is always decreasing. C. marginal costs are always less than average costs. D. None of these