Name three determinants of elasticity identified in the text. Explain how each one affects the responsiveness of demand
What will be an ideal response?
(1) Availability of substitutes. Where fewer substitutes are available, demand will tend to be more inelastic. (2) The importance of being unimportant. Where an item represents a smaller portion of a total budget, demand will tend to be more inelastic. (3) The time dimension. The greater the time available to adjust behavior, the more elastic demand tends to be.
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A country would achieve faster growth by ________
A) encouraging free trade B) increasing the cost of education C) increasing union membership D) taxing income and not consumption
All of the following are examples of a sequential game except which one?
A) Checkers B) Tic-Tac-Toe C) Chess D) Rock-Paper-Scissors
Economists assume that the goal of the firm is to maximize total
a. revenue. b. profits. c. costs. d. satisfaction.
The idea that firms incur actual costs when they change prices is known as _____. Firms in countries with lower inflation rates will change price _____ frequently compared to those countries where inflation is higher
Fill in the blank(s) with correct word