Which of the following comparisons is true regarding price elasticity of demand?
A. The demand for monthly car payments is less elastic than the demand for a monthly gym membership because the car payments require a greater share of the consumer's income.
B. The demand for gasoline a year after a price change is less elastic than the demand for gasoline a week after a price change because consumers have had time to adjust.
C. The demand for water is less elastic than the demand for diamonds because water is a necessity but diamonds are a luxury.
D. The demand for cough syrup is less elastic than the demand for insulin because there are no close substitutes for insulin.
Answer: C
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The structural surplus
A) is legally required to be positive. B) fluctuates over the business cycle. C) is, by definition, equal to the negative of the cyclical deficit. D) equals the actual surplus plus the cyclical surplus. E) is the government budget surplus that would exist if the economy was at full employment.
If you want to earn a high income you should figure out what others value because
What will be an ideal response?