Other things constant, the price elasticity of demand for a product will be smaller (more inelastic) if:
A. people spend a large share of their income on the product.
B. people spend an insignificant share of their income on the product.
C. the population in the market area is large.
D. there are many good substitutes for the product.
Answer: B
You might also like to view...
If a country experiences a real GDP growth rate of 6 percent, real GDP will double in
A) 10 years. B) 17.5 years. C) 16.67 years. D) 11.67 years. E) 14 years.
Romer and Romer found evidence that money is not neutral because
A) in several episodes, such as 1979-1982, changes in monetary policy led to recessions. B) they found that inflation was highly correlated with the rate of growth of the money supply. C) if money were neutral, no one would care what the Fed does. D) they found no evidence that productivity changes or changes in government spending contributed to business cycles; only monetary changes preceded every recession.
Strikes are a form of legitimized extortion by which workers withhold labor to extract higher returns for management
Indicate whether the statement is true or false
Which diagram illustrates the effects on the peanut butter market, if severe flooding destroys a large portion of the peanut crop in the economy?
What will be an ideal response?