Which is not characteristic of a product with relatively inelastic demand?
A. The good is regarded by consumers as a necessity
B. There are a large number of good substitutes for the good
C. Buyers spend a small percentage of their total income on the product
D. Consumers have had only a short time period to adjust to changes in price
B. There are a large number of good substitutes for the good
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One reason why consumers are unlikely to be too upset about tariffs is because
A) most consumers benefit from protection. B) tariffs are an inexpensive way to create jobs. C) consumer losses are not real losses. D) the costs are so spread out that no one pays a big share of the total.
The short-run aggregate supply curve:
A. Becomes flatter at output levels above the full-employment output B. Becomes steep at output levels above the full-employment output C. Is upward-sloping with a constant slope D. Is horizontal