Multiple Choice
If a good (like most fruit) has elastic demand, then which statement is NOT likely to be true?
A) It is a luxury good and represents a large proportion of the household budget.
B) It has many substitutes.
C) Consumers spend a small percentage of their income on it.
D) Consumers have time to adjust to market changes.
Correct Answer:
Verified
Correct Answer:
Verified
Q88: In general, for price increases or decreases,
Q89: Which statement is TRUE regarding a price-inelastic
Q90: Good M has an income elasticity of
Q91: Drew recently received a promotion at his
Q92: The long-run price elasticity of supply of
Q94: Because of declining stocks in the Caspian
Q95: The price of gluten-free buns falls by
Q96: The elasticity of demand measures the responsiveness
Q97: The price elasticity of demand for gasoline
Q98: (Figure: Market for Movie Tickets) The figure