Refer to the data. The price elasticity of demand is unity:
Answer the question on the basis of the following demand schedule:
A. throughout the entire price range because the slope of the demand curve is constant.
B. in the $4-$3 price range only.
C. over the entire $3-$1 price range.
D. over the entire $6-$4 price range.
B. in the $4-$3 price range only.
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As interest rates rise, other things equal,
A) investment decreases. B) money demand decreases. C) capital inflows increase. D) All of the above.
If the long-run supply curve is horizontal, we know that this is
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a situation in which some input prices change as firms enter and exit the industry.
A firm whose production function displays increasing returns to scale will have a total cost curve that is
a. a straight line through the origin. b. a curve with a positive and continually decreasing slope. c. a curve with a positive and continually increasing slope. d. a curve with a negative and continually decreasing slope.
Which of the following is an effect of tariffs on domestic employment?
a. Tariffs raise employment in the economy overall. b. Tariffs reduce unemployment in the affected industry. c. Tariffs raise unemployment in the affected industry. d. Tariffs have no impact on domestic employment.