Refer to the figure above. Which demand curve above is perfectly inelastic?
A. D2
B. D3
C. D4
D. D5
Answer: D
You might also like to view...
If a bank has 1,000 depositors, each of whom deposits $1,000 in the bank, and the bank makes loans of $10,000 each, then each depositor has contributed:
A. $1 to each loan. B. $100 to each loan. C. $10 to each loan. D. $1000 to each loan.
Figure 14-5
In , AD1 and SRAS1 indicate an economy initially operating at full-employment output level, Y1. The short-run impact of the Fed unexpectedly shifting to a more restrictive monetary policy will be
a.
a decrease in aggregate demand to AD2 and a decrease in real output to Y2.
b.
a decrease in aggregate demand to AD2 but real output would remain at Y1.
c.
a decrease in aggregate demand to AD2 and an increase in short-run aggregate supply to SRAS2, causing the price level to fall to P3 and real output to remain unchanged at Y1.
d.
no change; AD and SRAS will stay at AD1 and SRAS1.
The formula for the elasticity of supply is
A. The percentage change in price divided by the percentage change in quantity supplied. B. The percentage change in quantity supplied divided by the percentage change in income. C. The percentage change in price divided by the percentage change in quantity demanded. D. The percentage change in quantity supplied divided by the percentage change in price.
Adjusting nominal Gross Domestic Product (GDP) for price changes from a base year yields
A. current Gross Domestic Product (GDP). B. real Gross Domestic Product (GDP). C. Gross Domestic Product (GDP) net of relative price changes. D. constant disposable income.