The tax deductibility of employer-provided health insurance is a primary factor in the spread of health insurance during the latter half of the twentieth century

Suppose the production of mp3 players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is TRUE?

A) The production function has decreasing returns to scale. B) The production function has increasing returns to scale. C) The production function has constant returns to scale. D) Returns to scale vary with the level of output.

The demand for a product is likely to be more elastic:

a. the smaller the share of the total budget spent on the product. b. when more complementary products are available. c. in the short run than in the long run. d. when more good substitutes for the product are available.