How can the market demand for a product be inelastic but the demand for a particular firm is elastic?
A) There is no advertising.
B) There is a sufficiently large number of sellers.
C) There is only one or two sellers.
D) Buyers do not have complete information.
B
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Both the classical and the HO model predict that the pattern of trade is determined largely by international differences in factor endowments
Indicate whether the statement is true or false
Which of the following best describes gross domestic product (GDP)?
a. The market value of all inputs imported into a domestic economy to produce final goods and services during a period of time such as a year. b. The market value of all final goods and services produced in a nation during a period of time such as a year. c. The quantity of all goods and services produced in a nation during a period of time such as a year. d. The average price of all goods and services produced in a nation during a period of time such as a year.
The horizontal investment curve used to derive the TE curve implies that investment is
A) directly related to Real GDP. B) indirectly related to Real GDP. C) independent of Real GDP. D) sometimes directly and sometimes indirectly related to Real GDP, depending upon whether it is planned capital or planned inventory investment.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.