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Author Question: For many goods, the price elasticity of demand increases over time after a price hike because A) ... (Read 106 times)

ec501234

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on: Jun 29, 2018
For many goods, the price elasticity of demand increases over time after a price hike because
 
  A) consumer incomes tend to increase over time.
  B) inflation increases all prices and incomes over time.
  C) the ability to find good substitutes for the product whose price rose increases over time.
  D) All of the above answers are correct.

Question 2

An inflationary gap is occurs when
 
  A) real GDP is less than potential GDP.
  B) real GDP exceeds potential GDP.
  C) real GDP equals potential GDP.
  D) the economy is at full employment.


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Li Jun

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

B


ec501234

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

matt95

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Reply 3 on: Yesterday
Wow, this really help

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