Which of the following characteristics would describe a product with an inelastic demand?
A. The good is considered a necessity and many substitutes for the product exist.
B. The good is considered a necessity and few substitutes for the product exist.
C. The good is considered a luxury and many substitutes for the product exist.
D. The good is considered a luxury and few substitutes for the product exist.
B. The good is considered a necessity and few substitutes for the product exist.
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Are the short-run average total cost curve and the long-run average cost both U-shaped for the same reasons? If so, carefully explain these reasons. If not, explain why each curve is U-shaped
What will be an ideal response?
Mortgages issued to borrowers whose credit histories include failures to make payments on bills are known as ________ mortgages
A) subprime B) Alt-A C) catastrophic D) variable rate
On a linear demand curve, the lower the price,
A) the less elastic is demand. B) the more elastic is demand. C) the elasticity equals -1. D) the elasticity equals zero.
A multiplant firm has equated marginal costs at each plant. By doing this
A) profits are maximized. B) costs are minimized given the level of output. C) revenues are maximized given the level of output. D) none of the above