Other things constant, the price elasticity of demand for a product will be smaller (more inelastic) if:
a. people spend a large share of their income on the product.
b. people spend an insignificant share of their income on the product.
c. the population in the market area is large.
d. there are many good substitutes for the product.
b
Economics
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In the ________________ of externalities, the market equilibrium is ______________ efficient because it maximizes the net social benefit.
a. absence; ecologically b. presence; ecologically c. absence; economically d. presence; economically e. absence; environmentally
Economics
In Figure 11.1, a decrease in the marginal propensity to save is represented by a change in the consumption function from
A) C1 to C3. B) C3 to C1. C) C2 to C1. D) C1 to C2.
Economics