The amount by which people will increase or decrease their purchases when prices change
A) is typically greater in the case of luxuries than in the case of necessities.
B) is typically less for business firms than for households because business firms can more easily borrow to maintain purchasing patterns.
C) is typically less for business firms than for households because business firms must have certain goods to remain in operation.
D) tends to be greater over longer periods of time because it takes time to invent and to discover substitutes.
E) will be approximately zero unless the demand also changes.
D
You might also like to view...
For the recessions in the United States since the 1950s,
A) unemployment falls on average by 2 percentage points during the 12 months after a recession begins. B) unemployment rises on average about 5 percentage points during the 12 months after a recession begins. C) cyclical unemployment has been non-existent. D) unemployment rises on average by about 1.2 percentage points during the 12 months after a recession begins.
Which of the following represents non-human wealth?
A) total wealth minus housing wealth B) total wealth minus financial wealth C) wealth that cannot be taken from a person, by law D) financial wealth minus housing wealth E) none of the above