Explain elasticity of demand and two factors that affects it.
Answer: Elasticity of demand is the responsiveness of price towards changes in quantity demanded.
1. Share of income- If the good or sevices consist of large portion of ones income, the demand will be inelastic.
2. time duration- In the long run goods are more elastic and in the ahort run goods are more inelstic.
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Which of the following is a microeconomics topic?
a. A price of a new home. b. The inflation rate. c. The economy's growth rate. d. The unemployment rate. e. Forecasts of a recession next year.
If European economies experience a period of sustained recession and the United States does not, what will happen in the United States?
a. an increase in aggregate supply b. a decrease in aggregate supply c. a decrease in aggregate demand d. an increase in aggregate demand
The significance level of a test is:
A. the probability of rejecting the null hypothesis when it is false. B. one minus the probability of rejecting the null hypothesis when it is false. C. the probability of rejecting the null hypothesis when it is true. D. one minus the probability of rejecting the null hypothesis when it is true.
To buy season tickets at the new Levi's Stadium, 49ers fans have to buy a Personal Seat License (PSL) that then allows them to buy season tickets for the next 30 years. This is an example of
A) why the NFL shouldn't have anti-trust exemptions. B) two-part pricing, where the PSL is the lump-sum payment. C) pure bundling pricing. D) positively correlated pricing.