Which of the following characteristics would describe a product with an elastic demand?
A. The good is considered a necessity and many substitutes for the product exist.
B. The good is considered a necessity and few substitutes for the product exist.
C. The good is considered a luxury and many substitutes for the product exist.
D. The good is considered a luxury and few substitutes for the product exist.
C. The good is considered a luxury and many substitutes for the product exist.
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Economists measure the price level
A. by keeping track of nominal GDP. B. using a price index. C. by measuring the growth rate in money supply. D. by measuring the growth rate in real GDP.
Though Treasury bonds may have little default risk, what type of risk exists when current interest rates are low?
A) price risk B) refinancing risk C) interest-rate risk D) present value risk