When a particular product has numerous but imperfect substitutes, the demand for that product will tend to be
A. perfectly elastic.
B. inelastic.
C. unitary.
D. elastic.
Answer: D
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To reduce our dependence on foreign oil, policy makers must realize that the cross-price elasticity sign for gasoline and fossil fuel-burning cars is negative.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 6.9 below to answer the question(s) that follow.
Figure 6.9Refer to Figure 6.9. The marginal utility of the fourth video game rental is
A. 0. B. 4. C. 8. D. 22.
What role can the government play in correcting problems of imperfect information?
What will be an ideal response?
The first term in an NPV calculation is usually
A) positive, because firms consider only positive returns. B) positive, because interest charges do not accrue until the second period. C) zero, because interest charges do not accrue until the second period. D) negative, because funds for the project have to be borrowed up front before it is begun. E) negative, because the cost of the project is immediate, but revenue streams from the project come later.