The reason why a cure to a disease such as AIDS would have less elastic demand than a vaccine at every price is that
A. the vaccine would be more expensive.
B. for a person with AIDS, the only alternative to the cure is death.
C. for a person with AIDS, a vaccine would be more effective.
D. the cure would be more expensive.
Answer: B
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Firms should raise the prices on their goods
a. If the demand for the product is elastic b. If it acquires a firm selling a complement good c. If it acquires a firm selling a substitute good d. Both a and c
In the period of U.S. economic history known as the Great Depression, the rate of inflation was generally
a. trending upward. b. positive. c. uncertain. d. negative.
What combination of changes would most likely decrease the equilibrium price?
A. supply increases and demand decreases B. demand increases and supply increases C. supply decreases and demand increases D. demand decreases and supply decreases
Inferior goods are substandard.
Answer the following statement true (T) or false (F)