In the space provided in the graph above, draw a perfectly inelastic demand curve and state its elasticity.
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When a firm exits a competitive price-searcher market, the individual demand curves faced by all remaining firms in that market will
a. shift in a direction that is unpredictable without further information. b. shift to the right. c. shift to the left. d. remain unchanged. It is the supply curve that will shift.
If your taxable income rises from $35,000 to $45,000, and the taxes you pay rise from $12,000 to $15,000, your marginal tax rate is
A. 10 percent. B. 20 percent. C. 30 percent. D. 40 percent. E. Impossible to determine.
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for coffee. What happens in this market if buyers expect the price of coffee to rise?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
In recent years, the price of smartphones has fallen, while the quantity exchanged of smartphones has risen. We can conclude that this is most likely a result of
A) a decrease in supply while demand remained constant. B) an increase in demand while supply remained constant. C) an increase in demand that exceeded an increase in supply. D) an increase in supply that exceeded an increase in demand.