As price decreases along a linear demand curve, price elasticity of demand decreases
a. True
b. False
A
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A model's predictions are referred to as:
A) statistics. B) theories. C) hypotheses. D) empirical evidences.
Which of the following constitutes a mixed strategy Nash equilibrium of the Odds and Evens game?
A) Play Even and Odd with 50% probability each. B) Play Even with 75% probability and Odd with 25% probability. C) Always play Even. D) This game has no mixed strategy Nash equilibrium.
Which of the following statements is true?
a. Emissions-trading is trading that allows firms to buy and sell the right to pollute. b. The Coase Theorem is the proposition that private markets can rarely ever achieve social efficiency. c. The free-rider problem refers to those who ride on public transit systems without paying. d. Government failure has never occurred in the United States.
When a price ceiling that has an impact is imposed, it has the effect of
A. decreasing quantity supplied and increasing quantity demanded. B. decreasing both quantity supplied and quantity demanded. C. increasing quantity supplied and decreasing quantity demanded. D. increasing both quantity supplied and quantity demanded.