When small changes in price lead to infinite changes in quantity demanded, demand is perfectly
a. elastic, and the demand curve will be horizontal.
b. inelastic, and the demand curve will be horizontal.
c. elastic, and the demand curve will be vertical.
d. inelastic, and the demand curve will be vertical.
a
You might also like to view...
Refer to Figure 4-18. What is the size of the unit tax?
A) $8 B) $5 C) $3 D) cannot be determined from the figure
The slope of the production possibilities frontier is defined to be the marginal rate of
A) transformation. B) technical substitution. C) substitution. D) profit.
The branch of economics that focuses on decision making for the economy as a whole is called:
a. normative economics. b. macroeconomics. c. microeconomics. d. consumer economics.
In a competitive market, the market demand is Qd = 70 - 3P and the market supply is Qs = 6P. A price ceiling of $4 will result in a
A. surplus of 34 units. B. surplus of 58 units. C. shortage of 34 units. D. shortage of 24 units.