When demand is perfectly inelastic, the demand curve is
A. downward sloping.
B. upward sloping.
C. vertical.
D. horizontal.
Answer: C
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Prior to international trade, the price of good X is lower in country A than in country B. This means that we know that
A) country B has an absolute advantage in the production of product X. B) country B has a comparative advantage in the production of product X. C) country A has an absolute advantage in the production of product X. D) country A has a comparative advantage in the production of product X.
"Crowding-out" occurs in the IS-LM model as rising government spending requires a ________ in the interest rate in order to ________ the demand for money at the new equilibrium, thus ________ planned private investment
A) rise, keep constant, lowering B) rise, raise, lowering C) rise, lower, raising D) fall, keep constant, raising E) fall, raise, lowering
On a supply-and-demand diagram, quantity demanded equals quantity supplied
A) only at the single equilibrium price. B) at every price at or above the equilibrium price. C) at every price at or below the equilibrium price. D) at every price.
Recipients of Medicare tend to demand a greater quantity of low-value, high-cost services because
A) the services are readily available. B) recipients are coerced into demanding such services. C) the government mandates that they demand such services. D) the services are heavily subsidized.