Which of the following is NOT a determinant of the price elasticity of demand?
A. the number of substitutes available to buyers
B. the number of producers of the good
C. the time consumers have to adjust to a price change
D. expenditures on the item as a percentage of a consumer's total budget
Answer: B
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Refer to Game Matrix II. When would the upper left-hand corner be the likely outcome of this game?
Game Matrix II
The following questions refer to the game matrix below. Player A can play the strategies "High" and "Low," and Player B can play the strategies "Odd" and "Even."
a. When the game is played sequentially, with A being the first player.
b. When the game is played sequentially, with B being the first player.
c. When the players choose their strategies simultaneously.
d. The upper left-hand corner would never be the likely outcome, because the upper right-hand corner makes both player better off.
Which of the following explains why monopolists lack allocative efficiency?
a. Because they produce at the quantity where P = MC b. Because they produce at the quantity where P > MC c. Because they invest too much in research and development d. Because they use intellectual property as barriers to entry
Equilibrium and disequilibrium
A) are real world states. B) are mental constructs used by economists. C) foreshadow what is about to happen in a market. D) a and b E) a, b and c
Demand deposits $200 million Time deposits: Original maturity (less than 18 months): $100 million Original maturity (18 months or more): $400 million Use the information above to find the bank's required reserves.
What will be an ideal response?