Answer the following questions true (T) or false (F)

1. Necessities tend to have more inelastic demand than luxuries.

2. When there are few substitutes available for a good, demand tends to be relatively inelastic.

3. If the market for a product is narrowly defined, then there are likely to be many substitutes for the product and the demand for the product is relatively elastic.

1. TRUE
2. TRUE
3. TRUE

Economics

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A tariff is a tax

A) on an exported good. B) on an imported good. C) imposed on all traded goods. D) imposed on people's income. E) imposed on the difference between the value of the goods a firm imports and the value of the goods it exports.

Economics

According to the signaling theory of education,

a. schooling sends signals to employers in much the same way that advertising sends signals to consumers. b. a person becomes more productive by earning a college degree. c. education is less important than natural ability. d. All of the above are correct.

Economics