"I'm telling you, instead of charging $50 each, they could give the opera tickets away for free, and I myself still wouldn't go—ever!" What can we say about this person's demand for opera tickets?
A) His price elasticity is infinite, which means his demand curve is upward sloping.
B) His price elasticity is exactly equal to 1, which means his demand curve is unit elastic.
C) His price elasticity is exactly equal to 50, which means his demand curve is very elastic.
D) He doesn't have a demand for opera tickets.
D
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The study of the decisions of individual units in the economy is known as
A) macroeconomics. B) microeconomics. C) the study of incentives. D) ceteris paribus study.
Refer to Figure 4-3. If the market price is $2.50, what is the consumer surplus on the second ice cream cone?
A) $0.50 B) $1.50 C) $3.00 D) $10.50
A decrease in government spending on the park system would cause
A) the aggregate demand curve to shift to the right. B) the aggregate demand curve to shift to the left. C) a movement down and to the right along the aggregate demand curve. D) a movement up and to the left along the aggregate demand curve.
What are the effects of a tariff on a good?
What will be an ideal response?