The elasticity of a perfectly horizontal line is ______; the elasticity of a perfectly vertical line is _____.
Fill in the blank(s) with the appropriate word(s).
infinity; 0
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Spending a lot on advertising:
A. can act as a credible signal to consumers of high-quality products. B. can act as a credible signal to producers to create high quality substitutes. C. does not serve as a credible signal to consumers, since any producer can do it. D. can act as a credible signal to consumers of low-quality products.
Because handling charges are relatively fixed, the interest rate on a loan generally
A. is unrelated to the size of the loan. B. decreases with the size of the loan. C. is constant regardless of the size of the loan. D. increases with the size of the loan.
The marginal factor cost of a monopsonist is
A. upward sloping and rises faster than the supply curve. B. downward sloping when the supply curve of labor is upward sloping. C. horizontal. D. upward sloping and the same as the supply curve.
Refer to the diagram. A government-set price floor is best illustrated by:
A. price A.
B. quantity E.
C. price C.
D. price B.