A product's price elasticity of demand is likely to be greater
A) if it only has a few substitutes.
B) if consumers spend a small proportion of income on the product.
C) the less time consumers have to adjust to price changes.
D) if the product is a luxury good rather than a necessity.
E) Both answers C and D are correct.
D
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In the factor market, households
A) sell resources. B) are both buyers and sellers of resources. C) are neither buyers nor sellers of resources. D) buy resources.
Which of the following is the best example of tacit collusion?
A) The formation of a cartel. B) Price leadership. C) Predatory pricing. D) Noncooperative pricing behavior.
Excess capacity and inefficiency result under monopolistic competition
a. True b. False Indicate whether the statement is true or false
Recognition lag is the time it takes for policymakers to recognize the existence of an economic expansion or a recession
a. True b. False Indicate whether the statement is true or false