1- Which one of the following goods is most likely to have a price inelastic dem
ID: 1162606 • Letter: 1
Question
1- Which one of the following goods is most likely to have a price inelastic demand?
A good for which the quantity supplied is fixed
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2- Suppose the price of movie tickets decline. The income effect means that ...
people will be more likely to seek a higher-paying job
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3- Suppose the price of gasoline increases. The substitution effect means that ...
people will purchase more of inferior goods.
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A good that is a big part of a consumer’s budgetExplanation / Answer
1. The correct answer is C. If the good is vital then it will have inelastic demand. The correct answer is C.
2. The correct answer is A.
3. The correct answer is A.
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