Elasticity along a downward sloping linear demand curve
A) is constant and equal to the slope of the curve.
B) is constant and equal to the slope times the ratio of price to quantity.
C) changes along the curve.
D) does not vary with price unless the good is expensive.
C
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When output is above the full employment level of real GDP, the Federal Reserve banks should ________.
A. lower the federal funds rate B. buy bonds C. raise the discount rate D. lower the reserve ratio
According to Friedman and Phelps, the unemployment rate is above the natural rate when actual inflation
a. is greater than expected inflation. b. is less than expected inflation. c. equals expected inflation. d. low whether its greater than or less than expected.
Which of the following is an example of cyclical unemployment?
A. Qadir is employed in the summer as a lifeguard but cannot find a position in the winter B. Quincy left his job in Dallas to search for a new job in Idaho C. Quinlan worked as an engineer until he was laid off because of a decrease in aggregate demand D. Quinn has few job-related skills so she is never hired even though she continues to apply
Which of the following statements is true?
A. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls. B. The marginal product is the output per unit of a variable input. C. Average variable cost and average fixed cost are U-shaped curves. D. When marginal productivity of a variable input is falling then marginal costs of production must be rising.