"The fewer the number of substitutes for a product, the more elastic the demand for that product." Is the previous statement true or false?
What will be an ideal response?
The statement is false. The greater the number of substitutes, the more elastic the demand for that product. Conversely, the fewer the number of substitutes, the less elastic (the more inelastic) the demand for that product.
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The U.S. Gini coefficient shows that income inequality
a. increased steadily over the last four decades b. remained fairly constant in the 1970s, and then increased steadily through the 1980s and 1990s c. increased gradually over the period 1947–1968, and then declined steadily through the 1990s d. has changed little over the last four decades e. has declined in relation to other developed economies
When comparing short-run average total cost with long-run average total cost at a given level of output,
a. short-run average total cost is typically above long-run average total cost. b. short-run average total cost is typically the same as long-run average total cost. c. short-run average total cost is typically below long-run average total cost. d. the relationship between short-run and long-run average total cost follows no clear pattern.