The price elasticity of demand for a vertical demand curve is:
a. perfectly elastic.
b. perfectly inelastic.
c. unitary elastic.
d. elastic.
e. inelastic.
b
You might also like to view...
What type of profit can a firm in monopolistic competition earn in the long run? Explain your answer
What will be an ideal response?
Moral hazard is not eliminated in debt financing because
A) borrowers have an incentive to assume greater risk than is in the interest of the lender. B) firms with a great deal of debt often go bankrupt. C) principal-agent problems are greater with debt financing than with equity financing. D) the use of restrictive covenants tends to increase moral hazard.
According to liquidity preference theory, an increase in the price level would ________
A) increase the demand for real money balances B) decrease the supply of real money balances C) decrease the real interest rate D) all of the above E) none of the above
Why did the USSR collapse and China succeed? Explain
What will be an ideal response?