If the demand curve is perfectly elastic, the elasticity coefficient is ____ and the curve is ____
a. zero, vertical
b. infinity, horizontal
c. zero, horizontal
d. infinity, vertical
b
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The market demand for a good is determined by horizontally summing the demand curves of individual consumers
Indicate whether the statement is true or false
If e = 0.15, c = 0.07, and H = 140, the quantity of deposits at full multiplier expansion is
A) 1750.00. B) 13,333.33. C) 998.67. D) 636.36. E) 30.8.
Consumption patterns in the U.S. between 1790 and 1860 indicate a growing preference for
(a) basic necessities. (b) high quality clothes and homes. (c) simple, standardized and mass-produced goods. (d) luxury items.
Rent seeking in the form of lobbying for an increase in import tariffs by domestic producers
A) increases consumer surplus. B) increases total welfare. C) increases the deadweight loss. D) None of the above.