Author Question: In the economic way of thinking, which statement makes the most sense? A) Costs determine prices. ... (Read 53 times)

sammy · **on:** Jun 29, 2018

In the economic way of thinking, which statement makes the most sense?

A) Costs determine prices.
B) Prices determine costs.
C) Costs determine demand.
D) Demand determines supply.

Question 2

The supply of a good will tend to be highly elastic if

A) additional resources to produce the good can be obtained quickly and with no increase in cost.
B) its price rises quickly and sharply when the demand increases.
C) the good has few close substitutes.
D) the good is generally classified as a luxury.
E) the good is generally classified as a necessity.