Which of the following causes demand to be more elastic with respect to price?
A. Shorter periods of time to adjust to a change in price.
B. A higher ratio of price to income.
C. Fewer substitutes.
D. A steeper demand curve for a given price and quantity.
Answer: B. A higher ratio of price to income.
Economics
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Refer to Figure 12-9. At price P3, the firm would produce
A) Q2 units B) Q3 units. C) Q4 units. D) Q5 units.
Economics
Atlas Corporation is in sound financial condition. It sells a long-term bond. Which of the following make the interest rate on this bond lower than otherwise?
a. Both Altas' sound finances and the long term of the bond. b. Atlas' sound finances but not the long term of the bond. c. The long term of the bond but not Atlas' sound finances. d. Neither Atlas' sound finances nor the long term of the bond.
Economics