Goods with many close substitutes tend to have（）
A. less elastic demands
B. more elastic demands
C. price elasticities of demand that are unit elastic
D. income elasticities of demand that are negative
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Adam Smith suggested that an invisible had guides market economies. In this analogy, what is the baton that the invisible hand uses to conduct the economic orchestra（）
A. the government
B. prices
C. subsidies
D. the Federal Reserve
If two goods are substitutes, their cross-price elasticity will be（）
A. negative
B. zero
C. positive
D. equal to the difference between the income elasticities of demand for the two goods
If the government wants to reduce smoking, it should impose a tax on（）
A. buyers of cigarettes
B. sellers of cigarettes
C. whichever side of the market is less elastic
D. either buyers or sellers of cigarettes
A decrease in quantity demanded（）
A. results in a movement upward and to the left along a demand curve
B. results in a movement downward and to the right along a demand curve
C. shifts the demand curve to the left
D. shifts the demand curve to the right
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