Suppose that a monopolist must choose between two points on its demand curve: it can sell 100 units for $3 each, or it can sell 150 units for $2 each. Which of the following is true?
a. The monopolist is facing elastic demand.
b. The monopolist is facing unit elastic demand.
c. The monopolist is facing inelastic demand.
d. The monopolist is facing perfectly elastic demand.
e. The elasticity of demand cannot be determined with the information given.
B
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a. True b. False
A basic contention of supply-side economists is that we should reduce the regulation of the production process.
Answer the following statement true (T) or false (F)
Assuming bottled water and cola are substitutes, if the price of bottled water rises
A) there is a movement along the demand curve for cola. B) the demand curve for bottled water will shift to the right. C) the demand curve for cola will shift to the right. D) the demand curve for bottled water will shift to the left.
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Answer the following statement true (T) or false (F)