For a horizontal demand curve,
a. the slope is undefined, and the price elasticity of demand is equal to 0.
b. the slope is equal to 0, and the price elasticity of demand is undefined.
c. both the slope and price elasticity of demand are undefined.
d. both the slope and price elasticity of demand are equal to 0.
b
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Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many belts will Estonia consume?
A) 50 B) 70 C) 90 D) 120
What is the percentage of income received by the upper quintiles on line K?
A tariff
A. legally specifies maximum import or export ceilings. B. increases allocative efficiency. C. is a special tax applied only to internationally traded goods. D. lowers the prices of imported goods.
Two identical firms compete as a Cournot duopoly. The inverse market demand they face is P = 80 ? 4Q. The cost function for each firm is C(Q) = 8Q. The price charged in this market will be:
A. $32. B. $12. C. $56. D. $48.