As the number of available substitutes increases, the price elasticity of demand for a good:
A) initially increases then decreases.
B) initially decreases then increases.
C) decreases.
D) increases.
D
Economics
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If an average cost pricing rule is imposed on the natural monopoly in the figure above, then the deadweight loss will be
A) $0. B) $1 million. C) $9 million. D) $16 million.
Economics
If a household experiences a $880 increase in consumption with a $1,100 increase in disposable income, what is the slope of that household's saving function?
a. 0.20 b. 2.0 c. 0.80 d. 0.08 e. 0.25
Economics