Q1. Gene Bawerk, an economics professor, is lecturing on the factors that influence the price elasticity of demand. He makes the following assertions: Statement 1: For most goods, demand is more elastic in the long run than the short run. Statement 2: Demand for a good becomes more elastic when a close substitute for it becomes available on the market. With respect to Bawerk’s statements: A) only statement 1 is correct. B) both are correct. C) only statement 2 is correct.
Q2. The demand for a product tends to be price inelastic if: A) few good complements for the product are available. B) few good substitutes for the product are available. C) people spend a large share of their income on the product. | 
发表于 2008-12-31 09:33
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