If the demand curve is horizontal, then demand is:
A. perfectly elastic.
B. perfectly inelastic.
C. unit elastic.
D. elastic.
Answer: A
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Efficiency is best understood as a relationship between
A) ends and means. B) energy created and energy destroyed. C) energy output and energy input. D) pleasure and pain.
The demand for DVDs increases. As a result
A) the wage rate in the DVD industry increases and the quantity demanded of workers increases. B) the wage rate in the DVD industry increases and the quantity supplied of workers increases. C) the demand for labor increases and the supply of labor also increases, leaving wages unchanged. D) the demand for labor increases, but since the supply curve of labor is perfectly elastic, the wage rate does not change.
The change in the interest rate due to a change in the supply of loanable funds is referred to as the __________ effect
A) income B) expectations C) liquidity D) real
Demand for products such as insulin, cancer drugs, and tobacco is usually inelastic.
a. true b. false