Elasticities are used to measure responses to a change in:
A. the price of a good.
B. the price of a related good.
C. income.
D. All of these are true.
D. All of these are true.
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What are the reasons why disclosure by the SEC do not eliminate the information costs of adverse selection?
What will be an ideal response?
The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. What policy could government adopt to prevent entry deterrence by the incumbent?
A) production quotas B) price ceiling C) safety standards D) None of the above is correct.
The additional satisfaction that a consumer receives from one more unit of a good or service is known as _____
a. marginal utility b. total utility c. disutility d. profit e. the law of diminishing marginal utility
Which of the following probably best explains why trade restrictions are imposed even if the costs to consumers are greater than the benefits to protected industries?
a. Indifference on the government's part to the interests of domestic workers b. A desire to make other countries suffer c. Government's desire to earn high revenues d. Successful lobbying by employers and workers in protected industries e. Government's preference to safeguard the interest of the producers at the expense of the consumers