In general, a "big ticket item" such as a house or new car will
A) tend to have a more inelastic demand the more time that passes.
B) tend to have an inelastic demand because spending on the item takes up a large share of the average consumer's budget.
C) tend to have an inelastic demand because it has many substitutes.
D) tend to have a more elastic demand than a lower-priced good.
D
You might also like to view...
In a situation where an artist is selling his own work to the galleries, the principle is
a. The artist b. The gallery c. Both of the above d. None of the above
Which of the following statements is true?
a. Leisure only includes the time that a person spends socializing. b. Standing in a queue at a bank is not considered leisure. c. If someone enjoys his or her job, then the time he or she spends at work is considered leisure. d. Leisure will always decrease as a person's wage increases. e. Leisure includes the time that a person spends away from a paying job, regardless of how this time is spent.
Explain the concepts of explicit costs and implicit costs. Why do economists include implicit costs in their calculation of profits?
What will be an ideal response?
Which of the following is a long-run adjustment?
A) A restaurant hires a new chef. B) A company relocate to a new headquarter in another city. C) A bank hires a new CEO. D) A company hires ten new management trainees.