Demand is ________ when a change in price leads to a relatively larger change in the quantity demanded. On the other hand, demand is __________ when a change in price leads to a relatively smaller change in the quantity demanded. Select one: a. Elastic; inelastic b. Increasing; decreasing c. Decreasing; increasing
Demand is ________ when a change in price leads to a relatively larger change in the quantity demanded. On the other hand, demand is __________ when a change in price leads to a relatively smaller change in the quantity demanded. Select one: a. Elastic; inelastic b. Increasing; decreasing c. Decreasing; increasing
Chapter6: Elasticities
Section: Chapter Questions
Problem 1P
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Question
. Demand is ________ when a change in price leads to a relatively larger change in the quantity demanded. On the other hand, demand is __________ when a change in price leads to a relatively smaller change in the quantity demanded.
Select one:
a.
Elastic; inelastic
b.
Increasing; decreasing
c.
Decreasing; increasing
d.
Inelastic; elastic
Since services do not involve the production of physical things, they are not included in GDP calculations.
Select one:
a.
True
b.
False
. Assume that the government sets a price floor in the market for wheat. It the price floor is set above the market equilibrium of wheat, the result will be:
Select one:
a.
a shortage of bushels of wheat.
b.
an equilibrium in this market.
c.
not binding.
d.
a surplus of bushels of wheat.
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