If the price of a service tripled and people consumed exactly the same quantity, how much is the elasticity of demand for that service?
What will be an ideal response?
0 (perfectly inelastic)
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How can a new deposit of $10,000 at one bank create other new deposits at other banks? Suppose the desired reserve ratio is 10 percent and people keep no currency outside of the banks
What will be the new amount of deposits in the second and third rounds?
In the problem of double marginalization, the resulting price is ______than if the manufacturer were to sell directly to the consumer
a. Higher b. Lower c. The same d. None of the above
Market structure is determined mainly by the size of firms
Indicate whether the statement is true or false
As a result of the existence of automatic stabilizers
A. the government budget deficit will always increase during a period of economic recession. B. the economy will always tend to move toward a full-employment equilibrium. C. the government budget deficit will always increase during a period of economic expansion. D. the business cycle will no longer exist. E. None of the choices are correct.