Refer to the graph shown. Between points A and B, demand is:
A. perfectly elastic.
B. inelastic.
C. unit elastic.
D. elastic.
Answer: D
You might also like to view...
What is the Federal Open Market Committee (FOMC) ?
The World Bank has extended loans to the government of a developing country to finance construction of a canal with a certain future flow of earmings Now, however, the government has decided to redirect those funds to build a casino that may or may not generate suficient profits to allow the government to repay the loan This situation is an example of
a. Systemic Risk b. Moral Hazard c. Adverse Selection d. Asymmetric Information e. Principle Agent Problem
If firms in a monopolistically competitive market are earning positive profits, then
a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market.
Holding other factors constant, if a tax increase moves the government budget from deficit to surplus, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. increase; not change B. decrease; decrease C. decrease; increase D. increase; increase