A situation in which there is a reduction in quantity supplied to zero when there is the slightest decrease in price is
A) perfectly elastic supply.
B) perfectly elastic demand.
C) perfectly inelastic supply.
D) perfectly inelastic demand.
Answer: A
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List the three most common forms of trade barriers
What will be an ideal response?
Which of the following statements about two-part tariffs is false?
A) Because each individual has a different individual demand curve, if there is just one entrance fee some consumers will be able to reap some consumer surplus. B) The producer cannot capture the entire consumer surplus because the entrance fee might discourage some potential consumers even though they would have been willing to pay a lesser entrance fee. C) For two-part tariff pricing to be successful, the producer must be able to identify two distinct customer groups. D) Two-part tariff pricing allows a producer to capture the entire consumer surplus.
Policies that increase research and development spending will increase the rate of technological change and thus shift the production function up vertically
a. True b. False
Microeconomics focuses on: a. economic growth
b. trade balances. c. unemployment. d. the actions of individual households.