The demand for a product is likely to be more elastic
A. the shorter the time the consumer has to adjust to price changes.
B. the lower the price of the good.
C. the fewer the number of good substitutes.
D. the less the essential nature of the good.
Answer: D
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What will be an ideal response?
Firms that participate in regular open market transactions with ________ are called primary dealers
A) commercial banks B) Treasury banks C) the Federal Reserve D) mortgage lenders
Answer the following statements true (T) or false (F)
1. Mainstream economists identify wage-price rigidities as one cause of economic instability. 2. Mainstream economists believe that economic instability is primarily due to unexpected changes in consumer spending. 3. The mainstream view is that macro instability is caused by the volatility of the money supply which constantly shifts the aggregate demand curve around. 4. Mainstream economists think that the best way to stabilize the economy is to shift aggregate supply. 5. Monetarists argue that government policy interference in the economy is the primary cause of macroeconomic instability.
You decide to work in Japan for the next 10 years, accumulate some savings, then move back to the United States and convert your savings from yen to dollars
At the time of your move, economists predict that consumers in the United States have reignited their love of Japanese products, especially hybrid cars, and expect that this strong preference for Japanese products will continue for the next decade. How should this influence your decision to work and save in Japan? A) You should be discouraged as the growing U.S. preference for Japanese goods should increase the value of the yen to the dollar and decrease the value of your savings when converted to dollars. B) You should be encouraged as the growing U.S. preference for Japanese goods should increase the value of the yen to the dollar and raise the value of your savings when converted to dollars. C) You should be discouraged as the growing U.S. preference for Japanese goods should decrease the value of the yen to the dollar and decrease the value of your savings when converted to dollars. D) You should be encouraged as the growing U.S. preference for Japanese goods should decrease the value of the yen to the dollar and raise the value of your savings when converted to dollars.