If demand is perfectly elastic, then
a. the demand curve is a horizontal line
b. supply is perfectly inelastic
c. supply is perfectly elastic
d. the demand curve is a vertical line
e. the demand curve is downward sloping
A
You might also like to view...
The task of economic regulation is to
a. protect monopoly profits. b. approximate the results of the competitive market. c. replace competition with government ownership. d. increase competition within the market.
The absolute price of a good is the price of that good in terms of another good
Indicate whether the statement is true or false
If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million and the non-advertising firm will earn $1 million. Which of the following is true?
A. A secure strategy for firm A is to not advertise. B. Firm A does not have a secure strategy. C. A secure strategy for firm B is to not advertise. D. None of the answers is correct.
Suppose the Chinese yuan increases in its value relative to the U.S. dollar. In the U.S. economy,
A. the price level will fall and real GDP will increase if the increase in aggregate supply is greater than the decrease in aggregate demand. B. the price level will fall and real GDP will decrease if the decrease in aggregate demand is less than the increase in aggregate supply. C. the price level will increase and real GDP will fall if the increase in aggregate demand is less than the decrease in aggregate supply. D. the price level will increase and real GDP will fall if the decrease in aggregate demand is more than the increase in aggregate supply.