This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What makes the demand for some goods elastic and the demand for other goods inelastic? What will ... (Read 97 times)

asan beg

  • Hero Member
  • *****
  • Posts: 570
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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
Gracias!

Kedrick2014

  • Member
  • Posts: 359
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Elastic fibres are made of elastin, one type of structural protein found in the ECM of animal cells Elastic fibres are made of elastin, one type of structural protein found in the ECM of animal cells
What makes tea so good What makes tea so good
Myocardial Oxygen supply and demand Myocardial Oxygen supply and demand
Shippers Declaration for Dangerous Goods Shippers Declaration for Dangerous Goods
Economic recession in 2008 saw a small decrease in demand Economic recession in 2008 saw a small decrease in demand
Phosphorus in Phospholipids Phosphorus makes up part of the phospholipids found in cell membranes Phosphorus in Phospholipids Phosphorus makes up part of the phospholipids found in cell membranes
Video: Deafness Culture

For a complete list of videos, visit our video library