When the price of a textbook is $100, 60 copies are demanded; and when the price of that textbook goes up to $120, 30 copies are demanded. In the price range between $100 and $120, the demand for the textbook is
A. elastic.
B. perfectly elastic.
C. inelastic.
D. unit elastic.
Answer: A
You might also like to view...
The three major sources of economic profit are
A. risk-bearing, innovation, and exercise of monopoly power. B. risk-bearing, rent seeking, and discounting. C. innovation, invention, and speculation. D. exercise of market power, marginalization, and speculation.
To speed up the economy, the Fed typically uses __________ monetary policy; and to fight against the high rate of inflation, the Fed typically uses __________ monetary policy.
a. expansionary; expansionary b. expansionary; contractionary c. contractionary; contractionary d. contractionary; expansionary
The marginal revenue product of labor curve will always shift to the right if
A. the price of capital rises. B. product demand decreases and product price decreases. C. product demand increases and product price increases. D. the wage rate rises.
The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $5 per hour is imposed. Employment will fall by
A) 0 hours. B) 10 million hours per year. C) 20 million hours per year. D) 30 million hours per year.