Cross-price elasticity is very low in monopolistic competition.
Answer the following statement true (T) or false (F)
True
Brand loyal consumers do not see other products available as strong substitutes, so the cross-price elasticity of demand is very low.
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If toast and butter are complements, then which of the following would increase the demand for toast?
a. a decrease in the price of toast b. a decrease in the price of butter c. an increase in the price of butter d. Both a and b are correct.
A "decrease in the quantity demanded" means that
A) the demand curve has shifted to the right. B) the supply curve has shifted to the left. C) price has declined and consumers therefore want to purchase more of the good. D) price has increased and consumers therefore want to purchase less of the good.
Korman Industries is a foreign multinational that recently established operations in the European Union. What is the most likely advantage for Korman as a result?
A) Governance processes are streamlined because local governments have been eliminated. B) Market size is larger because of the elimination of internal tariff barriers. C) Differential external tariff barriers exist for product shipments. D) The EU uses English
Judy has just bought a car that is made in Germany. As far as the U.S. balance of payments is concerned this purchase is a(n)
A. deficit item. B. special draw. C. accounting identity. D. surplus item.