The demand for flour is
a. inelastic because there are few substitutes for flour and it represents a large percentage of a consumer's budget
b. inelastic because there are many substitutes for flour and it represents a large percentage of a consumer's budget
c. inelastic because there are few substitutes for flour and it represents a small percentage of a consumer's budget
d. elastic because there are no substitutes for flour and it represents a large percentage of a consumer's budget
e. elastic because there are many substitutes for flour and it represents a large percentage of a consumer's budget
C
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Which of the following is NOT an important factor affecting economic growth?
A) the rate of growth of capital B) the rate of saving C) the rate of growth in labor productivity D) the growth of leisure
All the following are assumptions of the classical model EXCEPT
A) pure competition exists. B) buyers and sellers react to nominal money prices rather than to relative prices. C) wages and prices are flexible. D) people are motivated by self-interest.