This topic contains a solution. Click here to go to the answer

Author Question: What makes the demand for some goods elastic and the demand for other goods inelastic? What will ... (Read 93 times)

asan beg

  • Hero Member
  • *****
  • Posts: 570
What makes the demand for some goods elastic and the demand for other goods inelastic?
 
  What will be an ideal response?

Question 2

If the economy experiences a negative supply shock, which of the following will be true?
 
  A) Inflation will fall, and real GDP will fall. B) Inflation will rise, and real GDP will rise.
  C) Inflation will fall, and real GDP will rise. D) Inflation will rise, and real GDP will fall.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

CharlieArnold

  • Sr. Member
  • ****
  • Posts: 319
Answer to Question 1

The magnitude of the price elasticity of demand for a good depends on three main influences:
 Closeness of substitutes. The more easily people can substitute other items for a particular good, the larger is the price elasticity of demand for that good.
 The proportion of income spent on the good. The larger the portion of the consumer's budget being spent on a good, the greater is the price elasticity of demand for that good.
 The time elapsed since a price change. Usually, the more time that has passed after a price change, the greater is the price elasticity of demand for a good.

Answer to Question 2

D




asan beg

  • Member
  • Posts: 570
Reply 2 on: Jun 29, 2018
Wow, this really help


matt95

  • Member
  • Posts: 317
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

For a complete list of videos, visit our video library