Lipitor, with few substitutes, should have an own-price elasticity of demand that is:
a. Relative elastic
b. Relatively inelastic
c. Perfectly inelastic
d. Perfectly elastic
b
You might also like to view...
If immigration increases the productivity of domestic workers, then it:
A. Decreases the return on capital B. Means that immigrant workers and domestic workers are substitutes C. Means that immigrant workers are entering low-wage occupations D. Increases the return on capital
If workers and firms have rational expectations, they understand that ________ monetary policy will raise the inflation rate, so actual inflation ________ expected inflation
A) contractionary; will be equal to B) contractionary; will be less than C) expansionary; will be greater than D) expansionary; will be equal to E) expansionary; will be less than
If new manufacturers enter the computer industry, then, holding all other things constant,
a. each "old" manufacturer must sell fewer computers than before. b. some "old" manufacturers must exit the industry. c. the equilibrium price of computers must rise. d. the equilibrium quantity demanded of computers must rise.
Which of the following is the best example of a long-run decision?
A. A business consulting firm considering whether to hire some interns to assist with research and data processing. B. A business consulting firm considering whether to add new computers while maintaining the same number of employees. C. An automobile manufacturing company considering whether to expand its existing workforce while keeping the same factory and equipment. D. An automobile manufacturing company considering whether to invest in robotic equipment to develop a more cost-effective production technique.