Which of the following characteristics would describe a product with an inelastic 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.
B. The good is considered a necessity and few substitutes for the product exist.
You might also like to view...
Under a floating exchange-rate regime, with a contraction in the money supply, which of the following is likely to happen in the short run?
A. Inflow of foreign capital B. Deficit in the financial account C. Rise in the domestic price level D. Increase in the country's holdings of official international reserves
In the United States during the 1930s:
A. government spending and taxes both increased, resulting in zero net fiscal expansion. B. government spending and taxes both decreased, resulting in a net fiscal contraction. C. government spending increased and taxes decreased, resulting in a fiscal expansion. D. government spending decreased and taxes increased, resulting in a fiscal contraction.