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
You might also like to view...
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.
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.
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.
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.