A perfectly inelastic demand curve exhibits
A) zero responsiveness to changes in price.
B) zero quantity demanded when there is a slight change in price.
C) a change in quantity demanded that is proportional to the change in price.
D) a change in quantity demanded that is always twenty percent of the change in price.
A
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Suppose the annual growth rate of GDP in Belize is 3.5 percent. In 20 years, GDP in Belize will double
A) 1 time. B) 1.5 times. C) 3.5 times. D) 7 times.
Refer to Table 18.1. The opportunity cost of a hat in Panama is
A) 1/2 of a glove. B) 3/4 of a glove. C) 4/3 gloves. D) 2 gloves.
Assume that a firm pays its workers above the market-clearing wage in a competitive industry. Explain how this might be a strategy to mitigate the problem of moral hazard?
What will be an ideal response?
Suppose that a monopolistically competitive market is in its long-run equilibrium. If the market demand curve shifts to the left due to a recession:
A. the number of firms in the market decreases in the short run. B. some firms may earn negative profits in the short run. C. firms' average costs of production decreases as they decrease output levels in the short run. D. None of these