1. A good that takes up only a small percentage of the consumer's budget will tend to have Group of answer choices a relatively price elastic demand. a perfectly price elastic demand. a relatively price inelastic demand. a perfectly price inelastic demand.
1.
A good that takes up only a small percentage of the consumer's budget will tend to have
Group of answer choices
a relatively
a perfectly price elastic demand.
a relatively price inelastic demand.
a perfectly price inelastic demand.
2.
The price of an airline ticket usually is lower if the amount of time between purchase and flight departure is greater. The airlines typically base the policy on the assumption that:
consumer demand becomes more price inelastic as departure time approaches.
consumer demand becomes less price inelastic as departure time approaches.
if the time horizon is longer, fewer travel options will be available to consumers.
if the time horizon is shorter, more travel options will be available to consumers.
3.
If Francis experiences an increase in his income, we would expect that Francis's demand for:
Group of answer choices
each good he purchases will remain the same..
normal goods will decrease, and his demand for inferior goods will increase.
normal goods will increase, and his demand for inferior goods will decrease.
all goods will disappear.
4.
A local clothing store is having a sale in which if you purchase one men's suit at full price, you can then purchase a second suit at half price. Russell purchases only one suit at the sale. The best explanation for why he would not purchase a second suit, even though the price is lower, is:
Group of answer choices
the increasing
the law of diminishing
the increasing marginal cost of purchasing the second suit.
the law of supply.
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