If a good has many close substitutes, then its demand is most likely
A) elastic.
B) inelastic.
C) unit elastic.
D) perfectly inelastic.
E) elastic or inelastic depending on whether the price of the good is increasing or decreasing.
A
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Specialization is the result of:
A) hiring experienced workers. B) paying higher wages to experienced workers. C) workers developing a certain skill set. D) increased demand for a firm's commodity.
A corn farmer is likely to have a _____________ price elasticity of supply than does a tree farmer due to ________________.
A. more elastic; a more flexible production process B. less elastic; a more flexible production process C. less elastic; a less flexible production process D. more elastic; a less flexible production process
You are hired as a production analyst at Monopoly-R-Us and you estimate that, at current output, demand is inelastic and marginal cost is positive. You advise your superiors that they can increase profit by
a. raising price until demand becomes unit elastic b. raising price into the elastic range c. lowering price until demand becomes unit elastic d. lowering price into the elastic range e. reduce output without changing price
Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to ________ economists, under rational expectations an expected increase in government spending would not change AD or AS.
A. Keynesian B. the new classical C. monetarist D. none of the above