quiz 3 chapter 3 solutions

quiz 3 chapter 3 solutions - Self-Test Questions Chapter 3...

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Self-Test Questions Chapter 3 MULTIPLE CHOICE 1. The concept of elasticity is used to a. analyze how much the economy is capable of expanding. b. determine the level of government invention in the economy. c. analyze supply and demand with greater precision. d. calculate consumer credit purchases. ANS: C 2. If a good is a necessity, demand for the good would tend to be a. elastic. b. horizontal. c. unit elastic. d. inelastic. ANS: D 3. If a good is a luxury, demand for the good would tend to be a. inelastic. b. elastic. c. unit elastic. d. horizontal. ANS: B 4. Demand for a good would tend to be more inelastic the a. fewer the available substitutes. b. longer the time period considered. c. more the good is considered a luxury good. d. more narrowly defined the market is. ANS: A 5. A binding price ceiling causes a. a shortage, which cannot be eliminated through market adjustment. b. a surplus, which cannot be eliminated through market adjustment. c.
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quiz 3 chapter 3 solutions - Self-Test Questions Chapter 3...

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