All else equal, the price elasticity of demand for a good tends to be lower:
A. in the long run.
B. if the good has many close substitutes.
C. if the good represents a large share of a consumer's budget.
D. if the good has few close substitutes.
Answer: D
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If you withdraw currency from your bank savings account, you are
A) increasing M1, decreasing M2. B) increasing both M1 and M2. C) decreasing both M1 and M2. D) not affecting M1 or M2. E) increasing M1 but not affecting M2.
What happens in the primary market?
A) newly issued claims are sold by the borrowing firm to the initial buyer B) already issued claims are sold from one investor to another C) primary inputs like electricity are sold D) a corporate financial manager will resell previously issued shares of stock
Refer to Table 10-2. Holding prices constant, when Keira's income changed from $18 to $23, what happens to her total utility and to the marginal utilities of the last cup of soup and the last sandwich purchased?
A) Her total utility and the marginal utility of the last sandwich consumed increase but marginal utility of the last cup of soup consumed decreases. B) Her total utility and the marginal utility of the last cup of soup consumed increase but marginal utility of the last sandwich consumed decreases. C) Her total utility decreases but the marginal utilities of the last cup of soup and the last sandwich consumed increase. D) Her total utility, the marginal utility of the last cup of soup consumed, and the marginal utility of the last sandwich consumed all increase. E) Her total utility increases but the marginal utilities of the last cup of soup and the last sandwich consumed decrease.
A firm should hire more labor when the marginal revenue product of labor
A) equals the wage rate. B) exceeds the wage rate. C) is less than the wage rate. D) Any of these can be true. E) None of these are true.