Along a linear downward-sloping demand curve, the price elasticity of demand will be:
A. equal to zero across each price range.
B. less than one across each price range.
C. different across each price range.
D. greater than one across each price range.
Answer: C
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If the Herfindahl-Hirschman Index (HHI) among the firms in the long distance telecommunications market is equal to 855, when would the Federal Trade Commission probably challenge a proposed merger between any two of the firms?
A) It would challenge if the HHI would increase by more than 50 points. B) It would challenge if the HHI would increase by more than 100 points. C) It would challenge no matter what happened to the HHI because the market has so few firms. D) It would not challenge because the HHI is less than 1500.
By law what goals are the Federal Reserve to pursue? What, if any, specific weights are given for these goals?
If a tax (paid by producers) on a good is reduced, this would
A. move its supply curve to the right. B. move its supply curve to the left. C. cause a movement along the supply curve to a (lower price, lower quantity) point. D. cause a movement along the supply curve to a (higher price, higher quantity) point.
When demand is unit elastic, a decrease in price will result in no change in total revenue.
Answer the following statement true (T) or false (F)