The price elasticity of a vertical demand curve is always
A. infinitely large.
B. zero.
C. one.
D. increasing as price increases.
Answer: B
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Refer to the table above. Laborland has a(n) ________ advantage in ________ shoes
A) comparative; stitching B) absolute; designing C) absolute; stitching D) comparative; both designing and stitching
What happens to the market outcome if cartel members cheat on the collusive agreement?
A) Price declines, but firm-level quantities remain the same because the firms act like price takers B) Price and quantity revert to the single-seller monopoly equilibrium outcome C) Other firms raise prices so that the average market price remains unchanged D) Price declines and quantity increases toward the perfectly competitive equilibrium
The benefits paid by the largest pension program in the United States are: a. not adjusted for changes in the price level
b. adjusted for changes in the price level. c. revised every five years. d. adjusted for changes in the nominal rate of interest. e. adjusted for changes in the real rate of interest.
The impact on the foreign exchange market for dollars resulting from the Fed selling euros will be:
A. an increase in the supply of dollars. B. a decrease in the supply of dollars. C. a decrease in the interest rate in the U.S. D. a decrease in the demand for dollars.