Which is larger: The price elasticity of demand for food or the price elasticity of demand for oranges? Why?
What will be an ideal response?
The price elasticity of demand for oranges is larger than the price elasticity of demand for food. The elasticity of demand for oranges is larger because there are many more substitutes for oranges (apples, grapefruit, lemons, and so forth) than there are substitutes for food.
Economics
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How does the government determine the quota amount that will produce an efficient use of a common resource?
What will be an ideal response?
Economics
Using "chain-weighted" prices to calculate real GDP remedies the distortions causes by changes in relative prices over time
Indicate whether the statement is true or false
Economics