What does it mean when the demand for a product is inelastic?
a. People will not buy any of the product when the price goes up.
b. A price increase does not have a significant impact on buying habits.
c. Customers are sensitive to the price of the product.
d. There are very few satisfactory substitutes for the product.
Answer: A price increase does not have a significant impact on buying habits.
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Which of the following might make it inefficient for a farmer to continue growing crops on a particular piece of farmland?
A) A fall in crop prices B) A rise in the price developers are willing to pay for the land C) Erosion of the top soil D) Rezoning of the land by the county government E) Any of the above could do it.
A firm might prefer a commission system of compensation when the nature of the work is repetitive and monotonous and can be performed by an individual
Indicate whether the statement is true or false