All of the following determine the price elasticity of demand except
A. the existence of close substitutes.
B. a change in the price of resources used to produce the good.
C. the proportion of a? person's budget spent on the good.
D. the length of the time period.
Ans: B. a change in the price of resources used to produce the good.
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In Porter's Five Competitive Forces model, "competition from substitute goods or services" refers to
A) substitute products that come from outside the industry. B) substitute products that come from foreign competitors in the same industry. C) substitute products that come from domestic competitors in the same industry. D) competition from producers of substitutes who outsource their production.
Inflation tax is
A) the sales tax. B) a tax on nominal goods. C) a special tax introduced in the 1970s to fight inflation. D) the revenue from seigniorage.
The Latin expression Ceteris paribus means:
A. everything else being equal. B. economic model. C. economists are partly right. D. partial scarcity is certain.
One way firms protect their monopoly is:
A. raising prices. B. advertising. C. taking advantage of short-run profits. D. producing items that can be copied easily.