Which of the following is not associated with more inelastic demand?
a. a limited amount of time for consumers to respond to a price change
b. availability of many close substitutes
c. large percentage of income spent on the good in question
d. Neither b. or c. is associated with more inelastic demand
d
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Automatic stabilizers are defined as
A) actions taken by an act of Congress to stabilize the economy. B) policy that has no multiplier effects. C) policy that stabilizes without the need for action by the government. D) discretionary policy taken to stabilize the economy. E) actions taken by the President without Congressional consent to stabilize the economy.
Martha used to pay for her expenses with her own hard-earned money. She always tried to spend as little as she could. However, she started spending more when she received a scholarship . This behavior is an example of ________
A) moral hazard B) a pecuniary externality C) the free-rider problem D) the paradox of thrift
Health insurance typically pays for most preventive care procedures in all of the following countries except
A) the United States. B) Canada. C) Japan. D) the United Kingdom.
If consumers paid an amount for any good that reflected the value of the total benefits they receive from consuming it, then
a. consumer surplus would be at a maximum b. consumer surplus would be equal to zero c. total revenue would equal variable cost d. consumer surplus would equal producer surplus e. producer surplus would exceed consumer surplus