If the quantity demanded of a product is the same for each possible price, demand is
A. perfectly elastic.
B. perfectly inelastic.
C. unit-elastic.
D. elastic.
Answer: B
You might also like to view...
A horizontal aggregate supply curve reflects the assumption that the
A) price level is constant. B) velocity of money is constant. C) saving rate is equal to zero. D) economy is at full employment.
Which nation was not an ally of the United States during World War I?
a. Austria-Hungary. b. Britain. c. France. d. Russia.
When was the first U.S. paper currency, the greenback, created?
a. During the Revolutionary War b. During World War I c. During World War II d. During the Civil War e. During the war of 1812.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and current international transactions become more positive (or less negative). b. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). c. The real risk-free interest rate falls, and current international transactions remain the same. d. The real risk-free interest rate rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.