A perfectly inelastic demand schedule:

A. rises upward and to the right but has a constant slope.
B. can be represented by a line parallel to the vertical axis.
C. cannot be shown on a two-dimensional graph.
D. can be represented by a line parallel to the horizontal axis.


Answer: B

Economics

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If Countries A and B produce only either rubber bands or paper clips, their maximum outputs are shown in the production possibilities schedules below.CountryRubber BandsPaper ClipsA4080B1040In country A the opportunity cost of 1 paper clip is

A. 1/2 rubber band. B. 2 rubber bands. C. 1/4 rubber band. D. 1 rubber band.

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Explain why a price floor set below the equilibrium price is ineffective

What will be an ideal response?

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Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a sole proprietorship. What is one advantage to Jeremy of setting up his business as a sole proprietorship?

A) As a sole proprietor, Jeremy would have the ability to share risk with shareholders. B) As a sole proprietor, Jeremy would have both ownership and control over the business. C) As a sole proprietor, Jeremy would face limited liability. D) All of the above would be advantages of setting up his business as a sole proprietorship.

Economics