Suppose there is no change in total revenue when the price changes. The demand curve for this good is:
A. perfectly elastic.
B. perfectly inelastic.
C. elastic.
D. unitary elastic.
Answer: D
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If society wants aggregate demand to increase without changes in the price level, then there must be
A) an increase in autonomous spending combined with an increase in the marginal propensity to save. B) a gap between full employment and the current level of real GDP and an increase in autonomous spending. C) an increase in autonomous saving so that autonomous investment spending can increase. D) an increase in autonomous spending and a horizontal short-run aggregate supply curve.
When a nation exports a good, its ________ surplus decreases and its ________ surplus increases
A) consumer; total B) consumer; consumer C) producer; producer D) producer; consumer E) total; consumer
An external cost is created when you
A) buy a sandwich for lunch. B) litter on the side of the road. C) graduate from college. D) buy flowers for your mother on Mother's Day.
Sergei makes millions of dollars a year playing hockey. Sergei is also the best tailor in his hometown in Russia. Why is Sergei unlikely to make his own clothes? a. He has already made all the clothes he will need for a few years
b. The opportunity cost to him of making his own clothes is very high because it takes away from his lucrative hockey career. c. Sergei just can't find the material he likes in the United States. d. Sergei has a comparative advantage in tailoring clothes.