The price elasticity of demand for a good that is a necessity is likely to be:

A) unit elastic.
B) perfectly elastic.
C) elastic, but not perfectly elastic.
D) inelastic.


D

Economics

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An example of the commodity substitution bias in the calculation of the CPI is a price increase in

A) turkey when the price of chicken doesn't rise. B) a GPS unit versus a AAA map book. C) a 2014 Toyota Camry versus a 2005 Honda Civic. D) etexts versus used books bought through Craigslist. E) new homes because people's incomes have increased.

Economics

Game theory was developed in the 1940s by John von Neuman, a mathematician, and an economist named

A) John Nash. B) Oskar Morgenstern. C) Milton Friedman. D) John Maynard Keynes.

Economics

A manufacturer will sell its product only to retailers who agree to buy its brand. This is an example of:

a. price discrimination. b. exclusive dealing. c. a tying contract. d. interlocking directorates.

Economics

In a sequential game, the first mover into a new market:

A. always earns a greater payoff than the second mover. B. may discourage the second mover from entering that market. C. only enters when there is a dominant strategy. D. guarantees that a Nash equilibrium will result.

Economics