Which of the following statements about the price elasticity of demand along a downward-sloping linear demand curve is true?
A) It is elastic at high prices and inelastic at low prices.
B) It is inelastic at high prices and elastic at low prices.
C) It is perfectly elastic at very high prices and perfectly inelastic at very low prices.
D) It is unit elastic throughout the demand curve.
A
You might also like to view...
A country must have absolute advantage in a good in order to have comparative advantage in that good
Indicate whether the statement is true or false
What does job specialization do?
a. It allows workers to focus on the parts of the production process where they have an advantage. b. It allows workers to focus on all aspects of the production process. c. It allows organizations to maximize the tasks in which workers perform. d. It allows the production process to be performed by a single worker.
As nominal Gross Domestic Product (GDP) rises, the transactions demand for money
A. decreases, and the money demand curve shifts to the left. B. increases, and the money demand curve shifts to the left. C. increases, and the money demand curve shifts to the right. D. remains constant, and the money demand curve remains the same.
In the space provided in the graph above, draw a perfectly inelastic demand curve and state its elasticity.
