If the demand for a good is relatively elastic, this means that consumer purchases of the good are
a. not very sensitive to the price of the good.
b. highly sensitive to the price of the good.
c. unrelated to the price of the good.
d. unaffected by changes in the income level of consumers.
B
You might also like to view...
Voluntary programs are dependable ways to protect the environment.
Answer the following statement true (T) or false (F)
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. What is total output in the Nash equilibrium?
A. 4,000 B. 2,666.66 C. 1,600 D. 8,000
Signaling is the attempt by the uninformed side of the market to uncover the relevant but hidden characteristics of the informed party
a. True b. False
Antitrust laws allow the U.S. government to do all of the following except _____.
(A) Stop firms from selling new products. (B) Watch and regulate industry. (C) Break up existing monopolies. (D) Stop firms from forming monopolies.