Answer:
D. the greater the availability of close substitutes.
Explanation:
Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.
Goods that are inelastic in demand are usually consumer-essential goods for which there are few substitution options, such as a cancer drug. On the contrary, elastic goods are those whose price variations diminish the demand for a range of substitute goods. For example, if the price of rice goes up, people may demand spaghetti, which is a substitute good.Therefore, goods with a large number of substitutes tend to have price elastic demand.
A resource will always have value as long as people are willing to pay for it. This happens because the resource is sought after which means people see worth in this resources. One example of this are precious minerals which have no apparent reason why anyone would consider them expensive other than the fact that peopl are willing to pay for them.
Answer: A) Reduced; Safer
Explanation: Equiping highway riders especially drivers with adequate knowledge as regards safe driving tips such as being conscious of driving speed and speeding areas on the highway, the use of traffic pointers, poor habits which should be avoided while or prior to mounting the wheels and explaining essential traffic rules.
If drivers abide and put these knowledge into use, there will be reductiin in the need for highway policing which are used to keep drivers in check and the cost expended on damages caused by reckless and careless driving. This will inadvertently lead to a safer highway for both drivers and commuters.
The correct answer is an institution helping to rectify a principal-agent problem
Principal-agent problem addresses the difficulties that can arise in conditions of asymmetric and incomplete information, when a principal hires an agent, such as the problem of potential conflict of interest and moral hazard, as the principal is presumably hiring the agent to pursue the principal's interests.
Various mechanisms can be used to try to align the interests of the agent with those of the principal, such as part payments, commissions, profit sharing, performance measurement (including financial statements), establishing an agent liaison or fear of dismissal.
