Refer to Figure 6-1. A perfectly elastic demand curve is shown in
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
B
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The union would have a better bargaining position in the negotiations if
a. The firm can hire individual workers at a lower wage b. The union has low wage workers who cannot afford to be off work c. The union has a strike fund to pay workers during work stoppage actions d. The firm can easily replace workers with machinery
A firm operating in a perfectly competitive market may earn positive, negative, or zero economic profit in the short run
a. True b. False Indicate whether the statement is true or false
An interesting development that happened in late 2008, relating to the Fed and bank reserves, is that the Fed:
A. Reduced the reserve ratio drastically B. Required banks to hold more excess reserves C. Started paying interest on the banks' reserves D. Gave back all the reserves to the banks to hold as vault cash
A shift in the demand curve will occur when
A) supply shifts. B) the price of an input used to produce the good changes. C) consumers' income changes. D) the price of the product changes.