If, for a given percentage increase in price, quantity demanded falls by a proportionately smaller percentage, then demand is
A) relatively elastic.
B) relatively inelastic.
C) perfectly elastic.
D) unit elastic.
B
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In which of the following situations will both market clearing price and the equilibrium quantity decrease?
A) an increase in demand and no change in supply B) an increase in supply with no change in demand C) a decrease in supply with no change in demand D) a decrease in demand with no change in supply
Which of the following observations is true? a. An unlimited quantity of organs is available in the United States. b. All organs are required to be donated
c. The supply curve for organs is perfectly elastic. d. The demand curve for human organs is upward sloping.
The gains from immigration of labor or capital to the recipient nation can be summarized as:
a. the total cost of acquiring new resources versus the cost of using domestic resources. b. the increase in prices minus the increase in the unemployment rate. c. the gain in domestic real GDP minus costs from immigration. d. the impact on the ability of labor unions to attract new members and the ability of domestic firms to retain profits.
The production possibilities curve bows outward from the origin because:
A. resources are not of uniform quality. B. more production of one good results in more production of the other good. C. opportunity costs increase as the production of a good increases. D. opportunity costs decrease as the production of a good increases.