The shampoo industry is constantly coming out with new products. The reason is that when a firm introduces a new shampoo into the market, the demand for the shampoo becomes ________ temporarily and economic profit ________
A) more elastic; decreases
B) less elastic; increases
C) more elastic; increases
D) less elastic; decreases
E) unit elastic; increases
B
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When indifference curves are bowed in toward the origin,
a. consumers are less inclined to trade away goods they are lacking. b. consumers' willingness to trade away goods they have in abundance diminishes. c. an increase in income will shift the indifference curve away from the origin. d. a decrease in income will shift the indifference curve toward the origin.
A movement from point C to point B in Figure 17.5 illustrates
A. The short-run opportunity cost of achieving long-run economic growth. B. An increase in the unemployment rate. C. A decreased capacity to produce. D. An unattainable combination of consumption and investment goods.