Demand is elastic if the consumer has only a few substitutes to choose from.
Answer the following statement true (T) or false (F)
False
Demand is more elastic when there are many substitutes for the consumer to choose from. When a price rises, many consumers with available substitutes will switch, and the quantity demanded will drop by a greater percentage than the price increase.
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The current chair of the Board of Governors of the Federal Reserve is
A) Janet Yellen. B) John Snow. C) Alan Greenspan. D) Henry Paulson.
Which of the following is not a characteristic of a prisoner's dilemma game?
A) Defecting is a dominant strategy for each player. B) Each player has two strategies: cooperate or defect. C) There is a single Nash equilibrium. D) The Nash equilibrium is the best outcome for each individual and for the grou
The price that we observe in the market is
A) the law of demand. B) a substitute. C) the money price. D) the relative price.
The supply curve for land in the city of San Francisco is most likely
A) horizontal or perfectly elastic. B) a downward sloping straight line. C) an upward sloping straight line. D) vertical or perfectly inelastic.