A perfectly elastic demand curve exhibits
A) zero responsiveness to changes in price.
B) that quantity demanded will decrease to zero when there is a slight increase in the price level.
C) a change in quantity demanded that is proportional to the change in price.
D) a change in quantity demanded that is always twenty percent of the change in price.
Answer: B
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A) maximum; $2.00 B) maximum; $3.50 C) minimum; $2.00 D) minimum; $3.50
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Indicate whether the statement is true or false
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A) marginal cost. B) average total cost. C) average fixed cost. D) average variable cost.