The demand for a good becomes more inelastic
a. as more close substitutes for it become available.
b. as it is increasingly viewed as a luxury good.
c. as the market is defined more broadly.
d. the longer the time horizon.
c
You might also like to view...
If a corporate bond with a face value of $1,000 pays yearly coupon payments of $40, what is the coupon rate?
A) 2.5% B) 4% C) 25% D) 40%
When the marginal product of labor rises
A) the marginal cost of production will exceed the average total cost. B) the marginal cost of production also rises. C) the average total cost of production also rises. D) the marginal cost of production falls.
Refer to the graph shown. According to the globalized AS/AD model, which world aggregate supply curve best represents the 2000s?
A. WAS0, and the United States had a large trade surplus. B. WAS1, and the United States had a small trade deficit. C. WAS2, and the United States had a small trade surplus. D. WAS3, and the United States had a large trade deficit.
Based on the classical view,
A. All goods produced are always purchased at an unchanging price. B. Unemployment never occurs. C. Cyclical unemployment might occur temporarily. D. Persistent unemployment might be a problem.