Higher price elasticity of demand means that a consumer's demand is:
A) more responsive to price changes.
B) less responsive to price changes.
C) less responsive to income changes.
D) more responsive to income changes.
A
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Indicate whether the statement is true or false
All homothetic goods are normal goods.
Answer the following statement true (T) or false (F)
Which of the following models view changes in real supply-side factors as determinants of short-run fluctuations in output and employment?
a. New classical models b. Political business cycle models c. Keynesian models d. Real business cycle models e. none of the above
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A. shift the industry supply curve to the right. B. cause the market price to fall. C. reduce the profits of existing firms in the industry. D. All of the responses are correct.