For many goods, the price elasticity of demand increases over time after a price hike because
A) consumer incomes tend to increase over time.
B) inflation increases all prices and incomes over time.
C) the ability to find good substitutes for the product whose price rose increases over time.
D) All of the above answers are correct.
C
Economics
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Which is a behavioral economics justification for limiting advertising directed towards children?
A) Children have no money. B) Children pester their parents too much. C) Children have no memory. D) Children do not always have transitive preferences.
Economics
A consultant who earns $100 per hour takes four hours off work to go to the movies. The out-of-pocket cost for the cab and the movie ticket are $12 . The total cost of the movie to the consultant is
a. $12 b. $412 c. $400 d. $388 e. $112
Economics