Refer to the diagram. In the P 1 to P 2 price range, we can say:
A. that consumer purchases are relatively insensitive to price changes.
B. nothing concerning price elasticity of demand.
C. that demand is inelastic with respect to price.
D. that demand is elastic with respect to price.
D. that demand is elastic with respect to price.
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A demand-pull inflation initially is characterized by
A) increasing real output and a labor surplus. B) no change in real output and a labor shortage. C) decreasing real output and a labor surplus. D) decreasing real output and a labor shortage. E) increasing real output and a labor shortage.
An important problem with the gold standard was that
A) it was too complicated and restricted business activity. B) a country did not have control of its domestic monetary policy. C) exchange rates tended to fluctuate a great deal, making it difficult for businesses to make long-run plans. D) one country could easily manipulate the system to its advantage and the disadvantage of other countries.
Globalization leads to a homogenizing of markets
Indicate whether the statement is true or false
The fall of actual GDP below the level of potential GDP is a signal that the economy is in a recession
a. True b. False Indicate whether the statement is true or false