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ECS1501-25-Y

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A perfectly inelastic demand curve is vertical (ie parallel to the price axis).

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Price elasticity of demand varies from point to point along a linear normal demand curve.

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One of the reasons why petrol (fuel) has a low price elasticity of demand is that it has no close substitutes.

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Necessities tend to have a low price elasticity of demand while luxury goods tend to have a high price elasticity of demand.

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The producers of a product with an elastic demand will have a strong incentive to reduce the price of their product.

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Which of the following is NOT a possible firm response to a price ceiling?
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What is one potential disadvantage of setting a minimum price in a market?
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Rent control is an example of
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Which of the following is a common example of a minimum price policy?
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What is the likely consequence if a minimum wage is set above the equilibrium wage?
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