In Figure 20.1, at what price is the elasticity of demand unitary?
A. $200.
B. $160.
C. $100.
D. $40.
Answer: C
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a. both a substitution effect and an income effect. b. only a substitution effect. c. only an income effect. d. either a substitution effect or an income effect.
Assume that the Fed performs a foreign exchange intervention in which it does nothing except buy German government bonds. One result of this will be that:
A. both the dollar and the euro depreciate. B. the dollar appreciates and the euro depreciates. C. the euro depreciates. D. the dollar depreciates.
A patent gives a single person or firm the exclusive right to sell some good or service forever
a. True b. False Indicate whether the statement is true or false
The profit-maximizing rule for a firm in a monopolistically competitive market is to always select the quantity at which
a. marginal revenue is equal to marginal cost. b. average total cost is equal to marginal revenue. c. average total cost is equal to price. d. average revenue exceeds average total cost.