If wages do not fully adjust to changes in prices, the aggregate supply curve is vertical.
Answer the following statement true (T) or false (F)
False
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When a firm is able to engage in perfect price discrimination, its marginal revenue curve
A) lies below its demand curve. B) is the same as its demand curve. C) lies above its demand curve. D) is the same as its supply curve. E) is undefined because it does not exist.
Assume that the demand curve for a certain good is a vertical line. This vertical demand curve illustrates the idea that:
a. consumers are unwilling to pay more than a certain price for the good. b. the good is a complement to another good. c. consumers are unwilling to pay less than a certain price for the good. d. there are many substitutes for this good. e. people will not change the quantity demanded of the good when its price is changed.
If demand is elastic, then
a. the percentage change in quantity demanded is larger in absolute value than the percentage change in price b. supply is inelastic c. prices can neither rise nor fall d. the percentage change in quantity demanded is smaller in absolute value than the percentage change in price e. supply is elastic
Ad valorem taxation means
A. that the tax rate is a percentage of the price paid for a product. B. a progressive property tax imposed in some states. C. a negative income tax. D. that only the value added by a service provider is taxed.