Which of the following could explain why the demand for table salt is inelastic?
A) Salt is a luxury for high-income consumers but a necessity for low-income consumers.
B) Salt is a rare commodity.
C) Salt is a luxury good.
D) Households devote a very small portion of their income to salt purchases.
D
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Which is characteristic of a traditional economy?
a. Communities tend to be fast-growing. b. They are usually based on light industrial production. c. They have a high standard of living. d. Children tend to have the same jobs as their parents did.
When there is an increase in the duration of unemployment, the U.S. Congress typically responds by
A) lowering income taxes. B) extending unemployment benefits. C) encouraging unemployed U.S. workers to seek employment overseas. D) redefining "unemployed" so the unemployment rate does not look so bad.