If the absolute value of the own price elasticity of demand is greater than 1, then demand is said to be:
A. unitary elastic.
B. elastic.
C. inelastic.
D. neither elastic, inelastic, nor unitary elastic.
Answer: B
You might also like to view...
The difference between the current account balance and net exports is
A) the capital account. B) net unilateral transfers plus net factor payments from abroad. C) adjustments in net foreign assets. D) income receipts from foreign assets.
The slope of an isoquant
A) gives the substitutability of inputs while keeping output constant. B) shows how output varies while keeping inputs constant. C) is independent of the marginal product of capital. D) shows the firm's returns to scale.
The real rate of return on holding cash is equal to:
A. the real interest rate. B. zero minus the inflation rate. C. the expected inflation rate. D. the nominal interest rate.
The shapes of the curves in the AS/AD model are based upon the:
A. principle of opportunity cost. B. relationship between the price level and total output. C. principle of substitution. D. relationship between a single good and its price.