Demand Is Most Likely to Be Price Inelastic

question 10

Multiple Choice

Demand is most likely to be price inelastic:

• A) When there are many substitutes.
• B) Over time as individuals find alternatives.
• C) When the product is heavily branded.
• D) When the consumer can switch easily to other products.

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Definitions:

Import Tariffs

Taxes imposed by a government on goods brought into the country from abroad, often used to protect domestic industries from foreign competition.

Import Tariffs

Taxes imposed by a government on goods and services imported from other countries to protect domestic industries from foreign competition or to generate revenue.

Comparative Advantage

The capacity of a person, business, or nation to manufacture a product or deliver a service with a smaller opportunity cost than that of their rivals.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, technology).