One reason why the demand for gasoline is inelastic is because
A) substitutes for gas abound.
B) substitutes for gas are hard to find.
C) gasoline is a luxury item.
D) people have a long time to shop around for automobiles that use less gas.
E) buses run on diesel fuel rather than gasoline.
B
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One advantage of a proprietorship is that
A) it is relatively easy to raise financial capital for a proprietorship. B) a proprietorship is relatively easy to form and to dissolve. C) there are limits to the possible liabilities of the owner. D) depreciation rates on capital are higher.
Equilibrium in the economy means
A. tax revenues equal government spending, so the government has no budget deficit. B. prices are not changing over time. C. quantities demanded and supplied are equal in all markets. D. unemployment is zero.