If a good has an elastic demand, then:
A. a small percentage change in price will cause a larger percentage change in quantity demanded.
B. a small percentage change in price will cause virtually no change in quantity demanded.
C. a large percentage change in price will cause a smaller change in quantity demanded.
D. any percentage change in price will cause an almost immediate response in quantity demanded.
A. a small percentage change in price will cause a larger percentage change in quantity demanded.
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If Happy Campers, Camping R Us, and Camp with Us are all competing in the camping market and Happy Campers consistently is the first to change prices, Best Beds might be ________.
A) signaling to the other firms to consistently raise their prices B) signaling to the other firms to consistently maintain their prices C) signaling to the other firms to consistently lower their prices D) offering to be the price leader
General Motors benefits from tariffs on imported automobiles. Companies that use many automobiles, such as rental agencies, want to get them cheaply. In this case, the issue of tariff legislation involves
a. a simple majority because it promises concentrated costs and benefits b. competing interests because it promises concentrated costs and benefits c. a simple majority because it promises concentrated benefits and widespread costs d. competing interests because it promises concentrated benefits and widespread costs e. competing interests because it promises concentrated costs and widespread benefits
If the dollar were to increase relative to the currencies of our major trading partners, our trade deficit would tend to ______________.
Fill in the blank(s) with the appropriate word(s).
The convergence theory suggests:
A. all countries eventually will experience the same rate of growth. B. countries may have the same rate of growth but differing levels of income. C. that poorer countries will grow faster than rich ones. D. All of these are true.