If consumers can easily switch to a close substitute when the price of a good increases, demand for that good is likely to be:
A. inelastic.
B. elastic.
C. unit elastic.
D. perfectly inelastic.
Answer: B
Economics
You might also like to view...
Without specialization countries would have ________ goods.
A. the same amount of B. more C. fewer D. new
Economics
According to the principle of diminishing returns, an additional worker decreases total output
Indicate whether the statement is true or false
Economics
Which country was least supportive of expansionary policy by the European Central Bank during the Financial Crisis of 2007-2009?
A) Spain B) Portugal C) Greece D) Germany
Economics
Price ceilings will likely result in the growth of black markets
a. True b. False Indicate whether the statement is true or false
Economics