Demand for a product tends to be more elastic the longer the time period considered because
A) sellers have more time to expand production.
B) buyers have more time to search for substitutes.
C) price increases over time make the price larger relative to buyers' incomes.
D) the inverse relationship between the price and the quantity demanded weakens over time.
E) buyers get used to the new price.
B
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Cash distributions made by government to individuals when no good or service is received in exchange are known as __________.
a. poverty payments b. taxes c. transfer payments
Ellie has been working for an engineering firm and earning an annual salary of $80,000 . She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of
deposit on which she was earning annual interest of $500 . Ellie's annual implicit costs will equal a. $55,200. b. $75,200. c. $80,500. d. $165,700.
In reality, commercial banks function most like ____ of the district Federal Reserve Banks.
A. stockholders B. regulators C. customers D. competitors
Which of the following is a deficit item in the U.S. current account?
A. A Saudi Arabian prince builds six new homes in California. B. Toyota builds a new plant in California. C. Sony buys a new film studio in Florida. D. Many U.S. residents who previously had not traveled abroad decide to make Mexico a tourist destination.