Author Question: The elasticity of demand for a product is likely to be greater A) the smaller the number of ... (Read 118 times)

tth · **on:** Jul 1, 2018

The elasticity of demand for a product is likely to be greater

A) the smaller the number of substitute products available.
B) the smaller the proportion of one's income spent on the product.
C) the larger the number of substitute products available.
D) if the product is an imported good rather than a domestically produced good.

Question 2

If a perfectly competitive firm incurs an economic loss, it should

A) shut down immediately.
B) try to raise its price.
C) shut down in the long run.
D) shut down if this loss exceeds fixed cost.