Which of the following factors would indicate an inelastic demand?
A. The good is a necessity, rather than a luxury.
B. The good represents a small fraction of the budget.
C. Demand is measured over a shorter period of time.
D. All of these
Answer: D
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The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, unemployment equals ________ workers
A) 100 B) 300 C) 400 D) 500 E) 200
The competition faced by firms in an oligopoly with differentiated products is higher than that faced by firm(s) in ________
A) a duopoly with homogeneous products B) perfect competition C) monopolistic competition D) monopoly
A market in which the Herfindahl-Hirschman Index is 1,000 is regarded by the Federal Trade Commission as
A) moderately concentrated. B) concentrated. C) competitive. D) monopolistic.
Refer to Figure 11-3. Technological change is shown in the figure above by the movement from
A) B to E. B) B to A. C) B to C. D) B to D.