Elasticity along a demand curve:
A. is constant if the demand curve is linear.
B. changes only when the demand curve is bowed out.
C. changes when the demand curve is linear.
D. changes only when the demand curve is bowed in.
C. changes when the demand curve is linear.
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Which of the following is a result of government price controls?
A) Some people win and some people lose. B) The deadweight loss from price ceilings is greater than the deadweight loss from price floors. C) Price controls increase economic efficiency. D) Price controls benefit poor consumers but harm producers and wealthy consumers.
If people decide to hold some of their cash and not deposit it, then the:
A. money multiplier overestimates how much money will be created in the economy. B. money multiplier underestimates how much money will be created in the economy. C. reserve ratio is not fully functioning, and should be raised. D. reserve ratio is not fully functioning, and should be lowered.
The interest rate the Federal Reserve charges commercial banks to borrow reserves is called the ________ rate.
A. Federal B. Fed funds C. prime D. discount
The following are incomes earned but not received by the nation's households, except:
A. Corporate income taxes B. Social security contribution C. Transfer payments D. Undistributed corporate profits