______________—a term referring to the extremely elastic situation of demand or supply where quantity changes by an infinite amount in response to any change in price; it is horizontal when graphed.
a. Infinite elasticity
b. Zero elasticity
c. Constant unitary elasticity
d. Perfect inelasticity
a. Infinite elasticity
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Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket falls from $50 to $20
A) everyone will buy a ticket. B) consumer surplus decreases from $48 to $24. C) only three tickets will be sold. D) consumer surplus increases from $0 to $62.
Corrective taxes cause deadweight losses, reducing economic efficiency
a. True b. False Indicate whether the statement is true or false
Which of the following statements is correct for a monopolist? (i) The firm maximizes profits by equating marginal revenue with marginal cost. (ii) The firm maximizes profits by equating price with marginal cost. (iii) Demand equals marginal revenue. (iv) Average revenue equals price
a. (i), (iii), and (iv) only b. (i) and (iv) only c. (i), (ii), and (iv) only d. (i), (ii), (iii), and (iv)
If a person wishes to maximize their satisfaction from the consumption of a free product, they should consume until
A. marginal utility is maximized. B. marginal utility is equal to total utility. C. total utility is equal to zero. D. marginal utility is equal to zero.