Which of the following statements is correct? A) The law of demand is only relevant for perfectly competitive markets. B) The cross-price elasticity of demand for inferior goods is always negative. c) In a perfectly competitive market with perfectly inelastic demand, the introduction of an ad-valorem tax will only affect the equilibrium price but not quantity. D) Opportunity costs only exist for durable goods.

Which of the following statements is correct? A) The law of demand is only relevant for perfectly competitive markets. B) The cross-price elasticity of demand for inferior goods is always negative. c) In a perfectly competitive market with perfectly inelastic demand, the introduction of an ad-valorem tax will only affect the equilibrium price but not quantity. D) Opportunity costs only exist for durable goods.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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