The demand for a product is more inelastic
a. When it has many close substitutes
b. In the long-run
c. When it has many complements
d. None of the above
c
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When a product's price increases from $800 to $1,200, the quantity demanded decreases from 11,000 to 9,000 . Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to: a. 0.5
b. 2.0. c. 0.25. d. 4.0.
Which of the following statements is correct?
a. A tax levied on buyers will never be partially paid by sellers. b. Who actually pays a tax depends on the price elasticities of supply and demand. c. Government can decide who actually pays a tax. d. A tax levied on sellers always will be passed on completely to buyers.
The term "double coincidence of wants" is necessary for _________ to take place.
Fill in the blank(s) with the appropriate word(s).
The question "why do national economies grow" would be a macroeconomic, rather than a microeconomic topic, because it
A. relates to the economy as a whole. B. studies a single market. C. considers the decisions of one industry. D. depends on the actions of suppliers.