By requiring that policyholders pay a deductible on a claim, insurers guard against

Moving rightward along a straight line, the slope of the line

A) always increases. B) always decreases. C) stays the same. D) increases if the line slopes upward to the right. E) decreases if the line slopes downward to the right.

In which of the following cases would the price elasticity of demand be expected to increase?

A) The number of close substitutes for the good increases. B) The time period under consideration decreases. C) The cost of the good relative to total income decreases. D) The supply of the good increases.