The demand for grape-flavored Hubba Bubba bubble gum is likely
a. inelastic because there are many close substitutes for grape-flavored Hubba Bubba .
b. elastic because there are many close substitutes for grape-flavored Hubba Bubba.
c. inelastic because the market is broadly defined.
d. elastic because the market is broadly defined.
b
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Tariffs lead to
A. the contraction of relatively efficient industries. B. an over allocation of resources to relatively efficient industries. C. an increase in the foreign demand for domestically produced goods. D. an under allocation of resources to relatively inefficient industries.
Always Round Tire's new division, Start-up Batteries, finds that its total cost curve, TC = 300 + 2Q + 2Q2 and its demand curve, P = 130 ? 2Q. If the division is operated as an independent profit center, what will be the price and quantity sold each day? Will the division make a profit? If the division is operated purely as a revenue center, how many batteries will they sell each day? If the division is operated as a cost center and told to produce 20 batteries per day, what would be the cost per battery?
What will be an ideal response?