The price elasticity of demand for alfalfa is perfectly elastic. Thus, the price elasticity demand for alfalfa is
A. 1.0.
B. 0.0.
C. -1.0.
D. infinity.
Answer: D
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Guaranteed benefits under government programs such as Social Security or Medicare are called
A) controllable expenditures. B) entitlements. C) automatic stabilizers. D) discretionary spending.
When economists refer to "the invisible hand," what do they mean?
What will be an ideal response?
Damian is texting while driving and ends up slamming into the back end of the car in front of him, which then strikes the car in front of it. By texting while driving, Damian has created a
A. negative externality. B. positive externality. C. nonexcludable public good. D. marginal social benefit.
Under a flexible exchange rate system, a decrease in the value of a domestic currency in terms of foreign currencies is referred to as
A) an appreciation. B) a depreciation. C) a devaluation. D) a revaluation.