The demand curve facing a monopolist will be more elastic
A) the greater is the number of substitute products.
B) as the consumers' need for the good increases.
C) the greater is the amount of fixed costs to cover.
D) as the number of consumers increases.
Answer: A
You might also like to view...
During the latter half of 2004 and the beginning of 2007, the Fed adopted a policy that consistently increased the federal funds rate. The most likely goal of this policy was to:
A. decrease inflation by increasing aggregate demand. B. increase output by decreasing aggregate demand. C. decrease inflation by decreasing aggregate demand. D. increase output by increasing aggregate demand.
If U.S. residents boycotts French goods, this will
A) reduce the demand for euros in the foreign exchange market. B) increase the demand for euros in the foreign exchange market. C) cause the euro to appreciate. D) have no effect on the euro.
Refer to the scenario above. Which of the following problems arises in this scenario?
A) Low transaction costs B) The free-rider problem C) Moral hazard D) A negative externality
Look at today's Wall Street Journal. What is the leading economic news story? With which of the big economic questions does it deal and what tradeoffs does it discuss or imply?
What will be an ideal response?