If the demand for flashlights is highly inelastic, this indicates that
a. higher flashlight prices will increase the demand for flashlights.
b. the price elasticity of demand for flashlights is greater than 1.
c. the price elasticity of demand for flashlights equals 1.
d. the quantity of flashlights purchased by consumers is not very responsive to a change in the price of flashlights.
D
You might also like to view...
Equity of U.S. companies can be purchased by
A) U.S. citizens only. B) foreign citizens only. C) U.S. citizens and foreign citizens. D) U.S. mutual funds only.
Which of the following is true about a monopoly?
A) Its demand curve is generally less elastic than in more competitive markets. B) It will always earn economic profit. C) It will always produce the same as a perfectly competitive firm. D) It will always be subject to government regulation. E) None of the above is true.
An unexpected decrease in aggregate demand
A) will decrease long-run aggregate supply. B) will decrease the average duration of unemployment. C) will decrease the price level. D) will decrease real GDP, but will not affect the rate and duration of unemployment.
The purchase of the assets of one steelmaker by another steelmaker might be a violation of the
a. Clayton Act b. Federal Trade Commission Act c. Wheeler-Lea Act d. Celler-Kefauver Anti-Merger Act e. Robinson-Patman Act