Which of the following is more likely to be the price elasticity of demand for the snake bite treatment antivenom?
A. Highly inelastic
B. Unit elastic
C. Elastic
D. Perfectly elastic
Answer: A
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Suppose the interest rate is 3% and that you are to receive three annual payments of $1,000, with the first payment today, the second payment one year from now, and the third payment two years from now. What is the present value of this stream of payments?
Total revenue will decrease when
A. the price elasticity of demand equals 1.20 and price rises. B. price and quantity change in opposite directions. C. the price elasticity of demand is negative. D. the price elasticity of demand equals 1.00 and price falls.
The expenditure line in the Keynesian cross diagram represents the:
A. equilibrium condition that Y = Y*. B. relationship between consumption and after-tax disposable income. C. relationship between planned expenditure and output. D. equilibrium condition that Y = PAE.
The slope of the consumption schedule between two points on the schedule is
A. the ratio of the change in consumption to the change in disposable income between those two points. B. equivalent to the average propensity to consume. C. equivalent to one plus the marginal propensity to save. D. the ratio of the change in disposable income over the change in consumption between those two points.