The demand for a product is likely to be more elastic when
a. the share of the total budget spent on the product is small.
b. more complementary products are available.
c. the consumer has a short time to adjust to price changes.
d. more good substitutes for the product are available.
D
You might also like to view...
The profit-maximizing rule for a perfectly competitive firm when choosing its level of output is to produce where price is equal to marginal cost
The profit-maximizing rule for a firm hiring labor in a perfectly competitive labor market is to hire workers up to the point where the marginal revenue product equal to the market wage. How are these two rules related to one another?
A multinational agency that specializes in making loans to a larger number of developing nations to promote long-term development and growth is
A) the International Bank. B) the World Bank. C) the International Monetary Fund. D) the World Monetary Fund.