The president of Tucker Motors says, "Lowering the price won't sell a single additional Tucker car." The president believes that the price elasticity of demand is:
a. perfectly elastic.
b. perfectly inelastic.
c. unitary elastic.
d. elastic.
e. inelastic.
b
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Use the following graph to answer the next question.
Which line in the graph above would best illustrate the asset demand for money curve?
A. Line 1 B. Line 2 C. Line 3 D. Line 4
An inducement to take a particular action is called
A) the marginal benefit. B) the marginal cost. C) opportunity cost. D) an incentive.
Describe the circumstances under which the M1 money supply could fall while the M2 money supply remains constant at the same time