For Which of the Following Is Demand Likely to Be

question 82

Multiple Choice

For which of the following is demand likely to be most sensitive to price increases?

• A)prescription drugs
• B)college tuition for last-semester seniors
• C)electricity
• D)hospital care
• E)a specific brand of soft drink

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Definitions:

Positive Economic Profits

Earnings that exceed the total costs, including both the explicit and implicit costs of a business.

Expand

To increase the scale, scope, or size of something, often used in the context of business growth or economic expansion.

Increasing-cost Industry

An industry in which production costs increase as output expands, often due to scarce resources or rising input prices.

Long-run Equilibrium

The condition in which all factors of production can be adjusted, leading to a situation where no firm in the industry wishes to change its output.