The more time that elapses, the
A. smaller the income elasticity of demand for the product.
B. more price elastic is the demand for the product.
C. greater the income elasticity of demand for a product.
D. less price elastic is the demand for the product.
Answer: B
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The figure shows the demand curve for hotel rooms at a local resort
a. If the hotel charges $120 per night, how many rooms will they rent? b. If there are only 40 rooms available, how much are customers willing to pay for a room? c. If 60 rooms are available, how much are customers willing to pay? d. What do the dollars in your answer to part (c) represent?
What is the relationship between scarcity and shortage, as economists use the terms?
A) Scarcity and shortage cannot exist simultaneously. B) Shortages are the basic cause of scarcity. C) Scarcity creates shortages in the long run. D) Scarcity is relative while shortages are absolute. E) Scarcity is unavoidable but shortages are not.