The demand curve for a monopolistic competitor slopes downward because:
a. quantity demanded drops to zero after a slight price increase
b. there are close, but not perfect, substitutes for the product.
c. customers have no loyalty to the product.
d. the product is not differentiated in any way from those offered by other sellers.
b
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If seller increases the price of the good and the total revenue increases, this implies that the demand for the product is inelastic.
Answer the following statement true (T) or false (F)
With the followings is NOT one of the reasons why quantitative easing in and of itself will not necessarily be stimulative?
A) Most of the resulting increase in the monetary base just flows into holdings of excess reserves. B) Banks just add to their holdings of excess reserves instead of making loans. C) The asset purchase program involves only the purchase of short-term government securities. D) The asset purchase program involves only the purchase of long-term government securities.
Since the end of World War II, corporate income taxes have accounted for
A. an increasing share of federal revenue. B. a steady share of federal revenue. C. a declining share of federal revenue. D. a rising share of revenue until 1980, and then a falling share.
If the MPC is .9, the spending multiplier will be:
a. 4 b. 10 c. 9 d. 5