If the market for a product is broadly defined, then
A) there are many substitutes for the product and the demand for the product is relatively elastic.
B) the good has many complements.
C) the expenditure on the good is likely to make up a large share of one's budget.
D) there are few substitutes for the product and the demand for the product is relatively inelastic.
D
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An rational, optimizing, self interested consumer would consume up to the point where
a. the consumer surplus from the last unit is positive b. the consumer surplus from the last unit is negative c. the consumer surplus from the last unit is zero d. none of the above
The underlying cause of inflation is
a. labor unions demanding higher wages. b. businesses charging higher prices. c. government raising taxes. d. increasing aggregate demand.