Which of the following is true of the demand curves shown below?
A. All of them have constant price elasticity.
B. Curves (1) and (3) have constant price elasticity.
C. None of them have constant price elasticity.
D. Curves (2) and (3) have constant price elasticity.
Answer: D
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One problem with unrestricted global capital movements is that capital suppliers may
a. have little information about conditions overseas b. react quickly to bad news regardless of economic fundamentals c. be interested in short-run gains rather than development objectives d. all of the above
In the 1870s, excess capacity in the railroad industry led to:
a. rates wars. b. the formation of regional federations to pool traffic or profits. c. price-fixing. d. hidden rate-cutting through rebates. e. All of the above.
Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service.
Answer the following statement true (T) or false (F)
When marginal utility is positive, total utility is:
A. decreasing. B. at its minimum. C. zero. D. increasing.