A vertical demand curve
A) is impossible.
B) reasonably represents demand for essential goods.
C) has a price elasticity of negative infinity since people will pay an infinite amount for the good.
D) represents a normal good.
B
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Which of the following is likely to shift the demand curve for carpenters rightward, assuming all else equal?
A) A fall in the wage rate of carpenters B) A fall in the price of wood C) A rise in the wage rate of carpenters D) A rise in the price of wood
Business cycles are officially dated by:
A) National Bureau of Economic Research, NBER. B) Bureau of Economic Analysis, BEA. C) Bureau of Labor Statistics, BLS. D) none of the above.
Consumer protection legislation includes legislation to
A) reduce discrimination in credit markets. B) require banks to make loans to everyone who applies. C) reduce the amount of interest that bank's can charge on loans. D) require banks to make periodic reports to the Better Business Bureau.
All other things held constant, premiums on options will increase when the
A) exercise price increases. B) volatility of the underlying asset increases. C) term to maturity decreases. D) futures price increases.