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Questions and Answers
Which factor influences the elasticity of demand by making goods tend to have more elastic demand over longer time horizons?
Which factor influences the elasticity of demand by making goods tend to have more elastic demand over longer time horizons?
- Time horizon (correct)
- Necessity vs luxury classification
- Definition of the market
- Availability of close substitutes
What type of goods tend to have inelastic demands?
What type of goods tend to have inelastic demands?
- Necessities (correct)
- Goods with close substitutes
- Goods in narrowly defined markets
- Luxuries
What classification of demand curve is considered elastic?
What classification of demand curve is considered elastic?
- Elasticity less than 1
- Inelasticity less than 1
- Inelasticity greater than 1
- Elasticity greater than 1 (correct)
Which market boundary tends to have more elastic demand?
Which market boundary tends to have more elastic demand?
What factor influences the elasticity of demand by making goods with close substitutes tend to have more elastic demand?
What factor influences the elasticity of demand by making goods with close substitutes tend to have more elastic demand?
What type of goods tend to have elastic demands?
What type of goods tend to have elastic demands?
What does it mean if the demand for a good falls when income falls?
What does it mean if the demand for a good falls when income falls?
What does it mean if the cross-price elasticity of demand is positive?
What does it mean if the cross-price elasticity of demand is positive?
In which scenario is demand more elastic?
In which scenario is demand more elastic?
What does a price elasticity of supply of 0.5 indicate?
What does a price elasticity of supply of 0.5 indicate?
What does it mean if the quantity supplied responds substantially to changes in price?
What does it mean if the quantity supplied responds substantially to changes in price?
What does it mean if the price elasticity of demand measures -2?
What does it mean if the price elasticity of demand measures -2?
What characterizes an inferior good in terms of income elasticity?
What characterizes an inferior good in terms of income elasticity?
What determines whether supply is more elastic in the long run than in the short run?
What determines whether supply is more elastic in the long run than in the short run?
When do complements have a negative cross-price elasticity?
When do complements have a negative cross-price elasticity?
What type of goods are substitutes?
What type of goods are substitutes?
Which factor influences the elasticity of demand by making goods tend to have more elastic demand over longer time horizons?
Which factor influences the elasticity of demand by making goods tend to have more elastic demand over longer time horizons?
What does it mean when the elasticity of demand is greater than 1?
What does it mean when the elasticity of demand is greater than 1?
What characterizes an inferior good in terms of income elasticity?
What characterizes an inferior good in terms of income elasticity?
When is demand considered inelastic?
When is demand considered inelastic?
What does it mean if the cross-price elasticity of demand is positive?
What does it mean if the cross-price elasticity of demand is positive?
What does a price elasticity of supply of 0.5 indicate?
What does a price elasticity of supply of 0.5 indicate?
What does the income elasticity of demand measure?
What does the income elasticity of demand measure?
When is demand considered to be more elastic?
When is demand considered to be more elastic?
What do complements have in terms of cross-price elasticity?
What do complements have in terms of cross-price elasticity?
In which case is supply said to be elastic?
In which case is supply said to be elastic?
What causes demand to be more elastic?
What causes demand to be more elastic?
What characterizes an inferior good in terms of income elasticity?
What characterizes an inferior good in terms of income elasticity?
What does it mean if the price elasticity of demand measures -2?
What does it mean if the price elasticity of demand measures -2?
In which scenario is supply more elastic?
In which scenario is supply more elastic?
What type of goods tend to have elastic demands?
What type of goods tend to have elastic demands?
What does the cross-price elasticity indicate if it is positive?
What does the cross-price elasticity indicate if it is positive?
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