The price elasticity of demand will be larger in absolute value if
a. expenditure on the good represents a smaller proportion of the consumer's total expenditure
b. we define the good more broadly
c. we define the good more narrowly
d. the number of substitutes is smaller
e. the number of consumers is larger
C
You might also like to view...
Institutions that make loans to borrowers and obtain funds from savers are called
A) financial markets. B) financial intermediaries. C) financial conglomerates. D) financial branches.
The opportunity cost of working one hour is the sum of the values you would have received from all other activities you could have done in that hour
a. True b. False Indicate whether the statement is true or false
A key step in using instrument variable methods is to
A) find one or more exogenous variables that influence your dependent variable. B) decrease the number of lags in the regression equation. C) conduct interviews to determine how accurate your data really is. D) run the regression on two different computers to see if the results differ. E) eliminate the dependent variable.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.