On December 10 the price of a Christmas tree is $50 and 100 trees are purchased. On December 20 the demand for Christmas trees decreases so that the price falls to $30 and 20 trees are purchased. From this set of facts, the
A) demand for Christmas trees is price inelastic.
B) demand for Christmas trees is price elastic.
C) supply of Christmas trees is inelastic.
D) supply of Christmas trees is elastic.
D
You might also like to view...
The American Federation of Labor
a. was an amalgamation of two labor organizations. b. had over 1 million members by 1905. c. sought to control job opportunities and conditions within each craft. d. allied with the National Civic Federation in attempt to create a more favorable public image. e. All of the above.
A matrix organization is organized on the basis of
A. geographic region. B. functional areas of expertise. C. product line. D. both functional specialty and product line.
If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries. B. completely ineffective on the exchange rate. C. likely to have a much greater impact on the exchange rate than in developed countries. D. likely to have roughly the same impact on the exchange rate as in developed countries.
For a large country, replacing imports with domestic goods can result in
A. a more efficient allocation of resources based on comparative advantage. B. improvement in the country's terms of trade. C. a decrease in the price of its exports. D. an increase in the world price of its imports.