A perfectly price elastic demand curve will be a ________ line.
A. vertical
B. horizontal
C. positively sloped
D. negatively sloped
Answer: B
You might also like to view...
Which of the following best explains why the federal tax rebates in 2008 and 2009 had almost no effects on aggregate demand?
A) According to Ricardian equivalence theorem, those tax rebates did not affect aggregate demand because they were accompanied by more government spending. B) According to the permanent income hypothesis, those one-time tax rebates did not affect consumption because taxpayers did not believe the rebates would occur. C) According to Ricardian equivalence theorem, those tax rebates did not affect aggregate demand because there were no direct expenditure offsets. D) According to the permanent income hypothesis, those one-time tax rebates did not affect consumption because they did not change taxpayers' permanent income.
Which of the following is least like a monopoly
a. Twitter b. YouTube c. Facebook d. Google
When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price falls to $0.80, the quantity demanded increases to 600 . Given this information and using the midpoint method, we know that the demand for candy bars is
a. inelastic. b. elastic. c. unit elastic. d. perfectly inelastic.
If a binding price floor is imposed on the video game market, then
a. the quantity of video games demanded will decrease. b. the quantity of video games supplied will increase. c. a surplus of video games will develop. d. All of the above are correct.