All of the following determine the price elasticity of demand except
A. the existence of close substitutes.
B. a change in the price of resources used to produce the good.
C. the proportion of a? person's budget spent on the good.
D. the length of the time period.
Ans: B. a change in the price of resources used to produce the good.
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In 2006, the European Union tariff on imported bananas from Latin America was €176 a ton. Suppose 2
5 million tons of bananas were imported in 2006 but then the tariff decreased to €152 a ton in 2007 and as a result, 3 million tons were imported in 2007. What is the tariff revenue in 2007? A) €445,000,000 B) €528,000,000 C) €440,000,000 D) €375,000,000
If your supplier becomes more profitable
a. you become more profitable by acquiring it b. you become less profitable by acquiring it c. acquiring it will make you more profitable if there are no synergies to exploit d. unless there are no synergies to exploit through acquisition, acquiring it will not make you more profitable