If at a price of $50, Ghani sells 20 hand-made leather cell-phone covers but at a price of $60, zero units are sold. Based on this information, the demand for his cell-phone covers is
A) elastic or perfectly elastic. B) unit elastic.
C) perfectly inelastic. D) elastic or perfectly inelastic.
A
You might also like to view...
Supply-side economics focuses on tax cuts to stimulate
A) aggregate demand by reducing saving. B) aggregate supply by increasing production. C) government spending. D) household consumption.
If a 15% increase in price for a good results in a 20% decrease in quantity demanded, the price elasticity of demand is
a. 0.75. b. 1.25. c. 1.33. d. 1.60.
If North Korea is currently producing at efficiency, and it proceeds to increase the size of its military, then, as long as nothing else changes, its
A. Production of nonmilitary goods will increase. B. Production possibilities curve will shift inward. C. Production possibilities curve will shift outward. D. Production of nonmilitary goods will decrease.
If a firm is a price taker, the demand curve faced by the firm is:
A. horizontal. B. vertical. C. downward sloping. D. upward sloping.