The price elasticity of demand for a linear demand curve follows the pattern (moving from high prices to low prices):
a. elastic, unit elastic, inelastic.
b. unit elastic, inelastic, elastic.
c. inelastic, unit elastic, elastic.
d. elastic, inelastic, unit elastic.
a
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The main differences between the bank and the nonbank institutions include all of the following EXCEPT
A) banks are regulated by the Fed while nonbank institutions are not. B) banks obtain the funds to buy investment by attracting deposits while nonbank institutions borrow funds. C) banks hold more equity then nonbank institutions. D) banks' balance sheets include assets and liabilities while nonbank institutions' balance sheets include only liabilities.
A typical neoclassical aggregate supply (AS) curve ______________ and a typical neoclassical Phillips curve __________________.
a. slopes upward; slopes downward b. is vertical; is vertical c. is vertical; slopes downward d. slopes upward; is vertical
The demand for chicken wings is more elastic than the demand for razor blades. Suppose the government levies an equivalent tax on chicken wings and razor blades. The deadweight loss would be larger in the market for
a. chicken wings than in the market for razor blades because the quantity of chicken wings would fall by more than the quantity of razor blades. b. chicken wings than in the market for razor blades because the quantity of razor blades would fall by more than the quantity of chicken wings. c. razor blades than in the market for chicken wings because the quantity of chicken wings would fall by more than the quantity of razor blades. d. razor blades than in the market for chicken wings because the quantity of razor blades would fall by more than the quantity of chicken wings.
Many economists describe the 2007–2009 period in the United States as being a condition of a(n)
A. deflationary gap. B. recessionary gap. C. inflationary gap. D. reflationary gap.