If the demand curve for a good always has unitary price elasticity, what does this imply about consumer behavior?
A) Consumers do not react to a price change.
B) Consumers will spend a constant total amount on the good.
C) Consumers are irrational.
D) Consumers do not obey the Law of Demand.
B
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Is this outcome efficient?
a. Yes because both of them are maximizing their payoffs b. No, because both of them can do better than their current equilibrium c. No, because cheating is goodNo, because cheating is good d. All of the above
In recent years, the United States has had a general pattern of a trade ________ when it comes to the balance of trade.
a. deficit b. surplus c. plateau d. stall
Suppose that prices in France increase by 8 percent while prices in the United States remain relatively stable. We would expect that (on the foreign exchange market) the demand for U.S. dollars will __________ and the supply of U.S. dollars will __________
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase
The process of economic growth is
A. Constantly occurring in the United States. B. Cumulative, whereby gains made in one year accumulate in future years. C. Not important to economists. D. Not affected by previous year's growth.