If a demand curve for a good is perfectly inelastic, then the seller could
A. increase price and not change the number of units purchased.
B. ignore the effects of costs on its profits.
C. rely on buyers to look for other products if it increases price.
D. sell more units by advertising.
Answer: A
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Refer to Figure 2-11. In the circular flow diagram, who are economic agents A and who are economic agents B?
A) A = households; B = firms B) A= firms; B = product markets C) A = firms; B = households D) A = households; B = factor markets
________ refers to a government's failure to repay its debt
A) Intolerance B) Distortion C) Seignorage D) Repudiation
The United States six largest labor unions have at least _______ members each.
A. 250,000 B. 1.3 million C. 2.5 million D. 5 million
For a cost function C = 100 + 10Q + Q2, the average fixed cost of producing 10 units of output is:
A. 5. B. 1. C. 10. D. None of the answers are correct.