The price elasticity of a horizontal demand curve is always
A. infinitely large.
B. zero.
C. one.
D. increasing as price increases.
Answer: A
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People who run businesses on a day-to-day basis are called:
A. engineers. B. technology experts. C. business managers. D. entrepreneurs.
If Figure 8.1 depicts the current situation for a monopolistically competitive firm, then in the long run we expect:
A. the firm's demand curve to shift to the left. B. the firm's demand curve to shift to the right. C. the price of the good to increase. D. the quantity of the good sold by the firm to increase.
Figure 12.2 shows demand, marginal revenue, and costs of a duopolist. If the two duopolists have the same costs and split the market equally, each profit maximizing duopolist will earn a profit of:
A. $30,000. B. $15,000. C. $10,000. D. $0.
In the foreign exchange market between the Japanese yen and the U.S. dollar, an excess demand for Japanese yen will result in a depreciation of the Japanese yen relative to the U.S. dollar.
Answer the following statement true (T) or false (F)