Suppose the market for hot pretzels in New York City is perfectly competitive. What is true of demand in this market?
a. The demand curve facing each seller is perfectly elastic.
b. The demand curve facing each seller is perfectly inelastic.
c. The market demand curve is perfectly elastic.
d. The market demand curve is perfectly inelastic.
e. The market demand curve is elastic.
A
You might also like to view...
Expansionary fiscal policy:
What will be an ideal response?
When there is a technological advance in the pork industry, consumer surplus in that market will
a. increase. b. decrease. c. not change, since technology affects producers and not consumers. d. not change, since consumers' willingness to pay is unaffected by the technological advance.
Total cost of production is the sum of total variable cost and total fixed cost. If the total fixed cost alone decreases:
A. the average total cost curve shifts upward at all output levels. B. the marginal cost curve shifts downward at all output levels. C. the vertical distance between the average total cost curve and the average variable cost curve decreases at all output levels. D. the average variable cost curve shifts downward at all output levels.
Websites and organization that use a "bet-against-yourself" system of encouraging people to work towards specific goals in the future are helping people deal with:
A. Framing effects B. Mental accounting C. Anchoring D. Time inconsistency