The price of gold is often volatile because:
A. Demand is relatively inelastic so changes in supply have a large effect on price
B. Supply is relatively elastic so changes in demand have a large effect on price
C. Demand is relatively elastic so changes in supply have a large effect on price
D. Supply is relatively inelastic so changes in demand have a large effect on price
D. Supply is relatively inelastic so changes in demand have a large effect on price
You might also like to view...
Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar rises from $65 to $75, the market quantity demanded would
A) decrease by 52 oz. B) decrease by 36 oz. C) increase by 36 oz. D) increase by 52 oz.
Which of the following would be a deadweight loss from a tariff?
A) The shift of consumer surplus to government B) The increase in producer surplus C) The decrease in consumer surplus D) The decrease in consumer surplus due to a drop in consumption E) All of the above.