Suppose that the value of the long-run absolute elasticity of demand for a good is one. Then, we know the short-run absolute price elasticity of demand will be
A. greater than one.
B. less than one.
C. infinity.
D. elastic.
Answer: B
Economics
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If consumption is defined as C = 2,400 + 0.9Y, then the marginal propensity to consume is 0.9
Indicate whether the statement is true or false
Economics
The more elastic the supply curve, _____
a. the greater the tax evasion b. the more suppliers have to bear the tax burden c. the more suppliers can shift the tax burden to demanders d. the more demanders shift the supply curve
Economics
Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.
a. income gap b. market equilibrium c. law of demand d. price model
Economics
c. They save consumers time and mental processing power.
a. irrational b. lack of c. marginal d. total
Economics