Given the information in Scenario 4.3, it would be correct to say that demand is:
A) infinitely elastic.
B) elastic, but not infinitely elastic.
C) unit elastic (Ep = -1).
D) inelastic, but not completely inelastic.
E) completely inelastic.
D
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Federal housing policies have substantially reduced the established patterns of housing segregation
Indicate whether the statement is true or false
Indifference curve analysis:
A. presumes, as does utility analysis, that satisfaction is numerically measurable. B. presumes, unlike utility analysis, that satisfaction is numerically measurable. C. presumes only that the consumer can say one combination of two goods yields more or less utility than some other combination. D. is in conflict with the idea of a downsloping demand curve.
Figure 6.9 depicts a hypothetical fish market with a horizontal supply curve. Suppose the government imposes a tax of $2 per pound of fish, and the tax is paid in legal terms by producers. Which of the following shows the loss of consumer surplus on the fish that are not consumed because of the tax?
A. Triangle C B. Rectangle B + Triangle C C. Triangle C + Rectangle E D. Rectangle B + Rectangle D