The argument that demand for apartments is inelastic in the short run is based on the idea that
A. it is costly to move to a different location.
B. it takes time to build new apartments.
C. landlords will fix up many new apartments when there are small changes in rent.
D. people will change apartments quickly when there are small changes in rent.
Answer: A
You might also like to view...
The rate a bank pays for deposit insurance should be independent of the investments undertaken by the bank with depositors' funds
Indicate whether the statement is true or false
One of the reasons for the structure of the Federal Reserve is ________.
a. to insulate monetary policy from politics b. to increase Congress’ influence on monetary policy c. to increase presidential influence on monetary policy d. to insulate fiscal policy from politics
Which of the following examples illustrates a regressive income tax?
a. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $90 in taxes. b. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $100 in taxes. c. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $110 in taxes. d. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $125 in taxes.
My income rose and the price of good Y rose also. That means that my demand curve for good X shifted right.
A. This statement will always be true if good Y is a substitute for good X. B. This statement will always be true if good Y is a substitute for X and X is a normal good. C. This statement will always be true if good X is a normal good. D. This statement is always true.