Refer to the diagram. Between prices of $5.70 and $6.30:
A. D 1 is more elastic than D 2 .
B. D 2 is an inferior good and D 1 is a normal good.
C. D 1 and D 2 have identical elasticities.
D. D 2 is more elastic than D 1 .
A. D 1 is more elastic than D 2 .
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Suppose the IS curve shifts back and forth. With a flat LM curve you get __________ variability in the output and __________ variability in the interest rate than you get with a steep LM curve
A) more; more B) more; less C) less; more D) less; less
Which of the following is the most likely result of an increase in the minimum wage?
a. An increase in the employment of unskilled workers. b. A decrease in the number of workers seeking minimum wage jobs. c. An increase in the demand for unskilled workers. d. A decrease in the employment of unskilled workers.