The price elasticity of demand for widgets at any particular price is determined by
A. whether widgets are luxuries or necessities.
B. how much of their budgets do consumers spend on widgets.
C. whether there are any good substitutes for widgets.
D. All of the responses are correct.
Answer: D
Economics
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Substitutes are pairs of products with
a. positive cross-price elasticity of demand b. negative cross-price elasticity of demand c. positive income elasticity of demand d. negative income elasticity of demand e. positive price elasticity of demand
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Rising demand for an agricultural good __________ the payments government is committed to pay farmers under a __________ program
A) raises; production flexibility contract B) raises; deficiency payment C) lowers; production flexibility contract D) lowers; deficiency payment
Economics