Which of the following goods is most likely to have the lowest price elasticity?
A) movie tickets
B) DVD rentals
C) tap water
D) pasta
Answer: C
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How do we show the short-run impact of an increase in spending growth in our aggregate demand and aggregate supply model?
A. The AD curve shifts to the right, and inflation and real growth both decrease along the SRAS curve. B. The AD curve shifts to the right, and inflation and real growth both increase along the SRAS curve. C. The AD curve shifts to the left, and inflation and real growth both decrease along the SRAS curve. D. The AD curve shifts to the left, and inflation and real growth both increase along the SRAS curve.
Long-run economies of scale exist over the range of output for which the long-run average cost curve:
a. is constant. b. is falling. c. is rising. d. does not exist.