Along a downward-sloping linear demand curve,
a. slope is constant and elasticity is changing
b. slope is changing and elasticity is constant
c. both slope and elasticity are constant
d. both slope and elasticity are changing
e. no generalizations can be made about slope
A
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When production is characterized by persistently declining long-run average costs as output increases
A) the costs of production are greater when competition exists than when a single firm produces a good. B) it is impossible for two firms to compete in the market. C) the costs are lower if a single firm exists, and even if the firm is unregulated, price will still be lower with a single firm. D) there is no need for the government to limit competition by licensing requirements.
Demand-side changes explain everything about stagflation
a. True b. False Indicate whether the statement is true or false
The investment demand curve will shift to the right as a result of a(n):
a. Decrease in the acquisition and maintenance cost of capital goods b. Increase in the excess productive capacity available in the industry c. Increase in taxes businesses pay to government d. Decrease in the confidence of business leaders about the economy
The price of a new textbook increases from $200 to $270, while the price of used copies of the textbook increased from $100 to $125. Other things being equal, we would expect
A. the quantity demanded of the used textbook to increase and the quantity demanded of the new textbook to decrease. B. the demand for the new textbook to increase and the demand for the used textbook to decrease. C. the quantity demanded of the used textbook to decrease and the quantity demanded of the new textbook to increase. D. the quantity demanded of both to fall.