There are very few, if any, good substitutes for motor oil. Therefore, the
a. demand for motor oil would tend to be inelastic.
b. demand for motor oil would tend to be elastic.
c. demand for motor oil would tend to respond strongly to changes in prices of other goods.
d. supply of motor oil would tend to respond strongly to changes in people's tastes for large cars relative to their tastes for small cars.
a
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The Case in Point on the Simpsons indicated that even fictional characters face:
A) diminishing marginal product. B) opportunity costs. C) the fallacy of false cause. D) positive statements.
A key difference between a Walrasian market and most auction markets is that in most auction markets
A) transactions occur continuously. B) bid prices exceed offer prices. C) only dealers have complete information. D) offer prices exceed bid prices.