There are several reasons why demand curves may become more elastic. Among them are
a. the market becomes more monopolistic and cross elasticities approach zero
b. the goods become less differentiated and more firms enter the industry
c. consumers have fewer substitutes and firms drop out of the industry
d. industry demand increases and consumers increase spending
e. the existence of a natural monopoly and an increase in fixed costs
B
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How are the fundamental economic questions answered in a market economy?
A) Large corporations alone decide the answers. B) Households and firms interact in markets to decide the answers to these questions. C) Individuals, firms, and the government interact in markets to decide the answers to these questions. D) The government alone decides the answers.
The greater your discount weight, the more your current decisions are driven by the future consequences of your actions. Do you agree? Explain
What will be an ideal response?