Identify the factors that affect elasticity of demand
What will be an ideal response?
-Availability of Substitutes
-Relative Importance
-Necessities Versus Luxuries
-Change Over Time
You might also like to view...
It can be argued that the minimum jobs proposal is preferable to a minimum wage law because:
a. it provides more job opportunities to women. b. it cannot be overturned by the federal government. c. it puts a floor on the wage as well as on the nature of the job. d. it applies to students and non-students.
The demand curve for money:
A. shows the amount of money balances that individuals and businesses wish to hold at various levels of private investment. B. reflects the open market operations policy of the Federal Reserve. C. shows the amount of money that households and businesses wish to hold at various rates of interest. D. indicates the amount that consumers wish to borrow at a given interest rate.
When consumption of a good or service produces benefits or costs that are not reflected in the market price for the good, this is known as a(n):
A. externality. B. common pool problem. C. nonexcludable resource. D. public good.
For a firm in a perfectly competitive industry, price equals marginal revenue.
Answer the following statement true (T) or false (F)