The price elasticity of demand along a linear demand curve is
A. one.
B. infinite.
C. more elastic at higher prices than at low prices.
D. constant.
Answer: C
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The U.S. dollar will appreciate in value if
A) the demand curve for U.S. dollars shifts rightward. B) the demand curve for U.S. dollars shifts leftward. C) the supply curve of U.S. dollars shifts rightward. D) Americans choose to buy more foreign goods.
The marginal social cost of burning garbage in Houston is the sum of the marginal private cost and the marginal external cost." Is this assertion correct or incorrect?
What will be an ideal response?
You are the manager of a firm that sells its product in a competitive market at a price of $48. Your firm's cost function is C = 60 + 2Q2. Your firm's maximum profits are:
A. $348. B. $192. C. $576. D. $228.
Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP falls?
A) SRAS shifted to the right by more than LRAS. B) AD shifted to the right by more than SRAS. C) AD shifted to the right by less than SRAS. D) AD did not shift and SRAS shifted to the left.