Figure 7-10
depicts a demand curve with a price elasticity that is
a.
unitary, implying that a percent change in price leads to an equal percent change in quantity demanded.
b.
perfectly inelastic, implying that the same amount will be purchased regardless of the price of the good.
c.
equal to zero.
d.
both b and c.
d
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The Federal Reserve has been quite consistently successful in keeping the inflation rate low over its entire history
a. True b. False
When the economy is producing the level of output equal to natural Real GDP, the unemployment rate is equal to
A) zero. B) the natural unemployment rate. C) the frictional unemployment rate. D) the structural unemployment rate.
Figure 3-19
Refer to . Buyers who value this good more than price are represented by which line segment?
a.
AC
b.
CE
c.
BC
d.
CD
When necessary, a higher price will simultaneously ________ the quantity supplied and ________ the quantity demanded, thus reducing the amount of excess ________.
A. decrease; increase; supply B. decrease; increase; demand C. increase; decrease; demand D. increase; decrease; supply