Which will cause a demand curve to be relatively elastic?
A. Purchases of the good require a small portion of consumers' budgets.
B. The good is considered a necessity.
C. The time interval considered is long.
D. Few substitutes exist.
Answer: C
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Indicate whether the statement is true or false
Sugarcane can be used for producing both sugar and ethanol. New regulations in certain countries now allow a higher level of ethanol in gasoline. An economist would expect sugarcane prices to ____, and quantity sold to ____
a. rise; rise. b. fall; fall. c. rise; fall. d. fall; remain the same.
When a monopolistically competitive firm raises its price,
a. quantity demanded falls to zero. b. quantity demanded declines but not to zero. c. the market supply curve shifts outward. d. quantity demanded remains constant.
To be counted as unemployed in the United States a person has to be
A. at least 16 and less than 65 and actively seeking employment. B. at least 16, out of work, and actively seeking employment. C. out of work and actively seeking employment. D. at least 21 and out of work.