If demand is very inelastic,
A. The demand curve will be very steep.
B. The demand curve will be horizontal.
C. The demand curve is upward-sloping.
D. The demand curve will be very flat.
Answer: A
You might also like to view...
Which of the following items is most likely to be an implicit cost of production?
a. the "competitive rate" salary the owner of the business pays herself for services provided b. property taxes on a building owned by the firm c. rental payments for a building utilized by the company and rented from another party d. the interest income foregone on the equity capital invested by owners
When the MPC = 0.80, the multiplier is
A) 5.00. B) 0.25. C) 4.00. D) 7.50.
The inability of Congress to pass a stimulus package after September 11, 2001, could be used as an argument for
A. activist fiscal policy. B. activist monetary policy. C. expansionary fiscal policy. D. contractionary monetary policy.
Figure 14.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. If buyers believe that all of used digital cameras in the market are lemons (low quality), what number of used digital cameras sold will actually be lemons?
A. 50 B. 60 C. 110 D. 150