Suppose a 5 percent increase in price causes a 25 percent decrease in quantity demanded. Which of the following statements is most likely true?
a. There are many substitutes for this good
b. There are few substitutes for this good.
c. The market for the good is a necessity.
d. The price change persists over a very short period of time.
a
Economics
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Which of the following factors has the most quantitative importance on the oversimplified multiplier formula?
A. It ignores variable imports. B. It ignores price-level changes. C. It ignores income taxes. D. All of these equally affect the oversimplified multiplier formula.
Economics
According to the text, if individuals base their expectations on economic models, we say that their expectations are:
A. extrapolative. B. adaptive. C. historical. D. rational.
Economics