The shape of a perfectly inelastic demand curve is
A. horizontal, Ed = 0.
B. vertical, Ed = 0.
C. horizontal, Ed = -1.
D. horizontal, Ed = ?.
Answer: B
You might also like to view...
When money is used to express the value of goods and? services, it is functioning as a
A) medium of exchange. B) store of value. C) store of purchasing power. D) unit of account.
The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is
A) inefficient market hypothesis. B) moral hazard. C) information disparity. D) asymmetric information.
"If Mexico is currently operating at a point beyond its production possibilities frontier, then there are unemployed or misallocated resources in Mexico." Is this statement true or false? Briefly explain your answer
What will be an ideal response?
The most volatile component of aggregate demand is
a. consumption spending. b. government spending. c. investment spending. d. net exports.