Which of the following is a determinant of the price elasticity of demand for a product?I.The existence of substitute goodsII.The percentage of a consumer's total budget devoted to purchases of that commodity
A. I only
B. II only
C. both I and II
D. neither I nor II
Answer: C
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By the permanent-income hypothesis, for every dollar that actual income increases, consumption expenditure rises in the short run by ________ dollars
A) kj B) k + j C) k/j D) k - j E) j + (1/k)
Explain how a change in expected future output could affect current output
What will be an ideal response?
Which of the following will shift the supply curve for laptop computers to the left?
A. a reduction of the number of firms that make laptop computers B. development of a cheaper microchip used in laptop computer production C. a subsidy to the laptop computer industry D. expectations of a future decline in laptop computer prices
A game in which players as a group lose at the end of the game is referred to as
A) zero-sum game. B) negative-sum game. C) positive-sum game. D) tit-for-tat game.