If a good has an absolute price elasticity of 0, the demand for the good is
A) unit elastic.
B) inelastic.
C) perfectly inelastic.
D) elastic.
C
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What is the source of market power for a monopolistically competitive firm?
If Les can produce two pairs of pants per hour while Eva can produce one pair per hour, then it must be true that:
A. Les has a comparative advantage in producing pants. B. Les has an absolute advantage in producing pants. C. Les has both comparative and absolute advantage in producing pants. D. Eva has a comparative advantage in producing pants.
Refer to the above diagram. If this is a competitive market, price and quantity will move toward:
A. $20 and 150, respectively. B. $60 and 200, respectively. C. $60 and 100, respectively. D. $40 and 150, respectively.
One essential force in the growth of human capital over the past several decades has been
A. the community college system. B. the growth of Social Security. C. the growth of Medicare and Medicaid. D. the reduction in the inflation rate.