Author Question: Jack wants to buy a new house. But the surge in housing demand over the last few months has led to a ... (Read 55 times)

FButt · **on:** Jun 29, 2018

Jack wants to buy a new house. But the surge in housing demand over the last few months has led to a sharp increase in housing prices making it impossible for him to afford one on his current income. This is an example of a ________.

A) positive externality
B) negative externality
C) pecuniary externality
D) conspicuous externality

Question 2

Which of the following best describes a good with perfectly elastic demand?

A) For a given price change, the percentage change in quantity demanded will be less than the percentage change in its price.
B) The demand curve for the good initially slopes upward, reaches its maximum, and then slopes downward.
C) Even the smallest increase in the price of the good will cause consumers to stop consuming it completely.
D) The quantity demanded of the good is completely unaffected by a price change.