If something is addictive, then
A) price and demand are inversely related.
B) price elasticity of demand is equal to one.
C) demand is perfectly inelastic.
D) demand is perfectly elastic.
C
You might also like to view...
When interest rates rise, the transactions demand for money usually
A) decreases. B) increases. C) decreases initially and then increases to the original position. D) does not change.
The good produced by a monopoly
A) has perfect substitutes. B) has no substitutes at all. C) has no close substitutes. D) can be easily duplicated. E) must be unable to be resold.
The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is maximized when it produces
A) 0 units of output. B) 5 units of output. C) 15 units of output. D) 20 units of output.
For a demand curve to be upward sloping, the good would have to be an inferior good, and
A) the income effect would have to be smaller than the substitution effect. B) the income effect would have to be larger than the substitution effect. C) the income effect would have to be equal to the substitution effect. D) the income effect and the substitution effect would have to be nonexistent.