If the price falls and the total amount consumers spend on the good falls, then demand must be
A. inelastic.
B. elastic.
C. perfectly elastic
D. perfectly inelastic.
Answer: A
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A good’s marginal social cost is defined as its
A. marginal private cost minus the value of any detrimental externality. B. incidental cost. C. marginal private cost plus the value of any taxes paid on its production. D. marginal private cost plus its incidental cost.
Hester owns an ice cream sho
A) $2. B) $20. C) $10. D) $40. E) $4.
In an open economy, the government purchases multiplier will be larger the
A) larger the marginal propensity to consume. B) smaller the marginal propensity to import. C) smaller the marginal income tax rate. D) All of the above are correct.
A graph shows the quantity of corn on the vertical axis and the quantity of steel on the horizontal axis. What is the proper interpretation of a horizontal line at a particular quantity for corn that is parallel to the horizontal axis of the graph?
What is the slope of the horizontal line? Please provide the best answer for the statement.