When the absolute value of the price elasticity of demand falls in the range of 0 and 1, demand is said to be ________ , when it equals 1, demand is said to be ________ , and when the price elasticity of demand is greater than 1, demand is said to be ________
a. elastic, unitary elastic, inelastic
b. inelastic, unitary elastic, elastic
c. unitary elastic, elastic, inelastic
d. inelastic, elastic, unitary elastic
b
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In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm total cost is
A) $100. B) $70. C) $30. D) $130.
Refer to Figure 11.1. Assume aggregate demand is initially represented by AD1 and full-employment output is $6.0 trillion. If aggregate demand increases by the amount of the GDP gap, equilibrium will occur at
A. Point a. B. Point b. C. Point c. D. Point d.
Holding all else constant, a decrease in the real interest rate on U.S. assets will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; increase C. decrease; decrease D. increase; increase
The marginal revenue product of labor is the:
A. change in labor necessary to produce an additional unit of output. B. cost of additional labor necessary to produce an additional unit of output. C. change in output resulting from adding an additional unit of labor. D. change in revenue resulting from adding an additional unit of labor.