In a perfectly competitive industry, the demand for a single firm's product is perfectly elastic
A) because this firm's output is a perfect substitute for any other firm's output.
B) because this firm is a price maker.
C) only in the long run.
D) because there are many buyers in this market.
A
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If the United States' unemployment rate is 10 percent and the capacity utilization rate is 70 percent, the economy is in the midst of a ____________.
Fill in the blank(s) with the appropriate word(s).
Refer to the figure above. What is the total surplus before Barylia opens up to free trade?
A) $250 B) $325 C) $800 D) $1,125
If price elasticity of demand is 2.0, this implies that consumers would
a. buy twice as much of the good if price falls by 10 percent b. require a 2 percent cut in price to raise quantity demanded of the good by 1 percent c. buy 2 percent more of the good in response to a 1 percent cut in price d. require at least a $2 increase in price before showing any response to the price increase e. buy twice as much of the good if the price drops 1 percent
If a deposit of $50 in the banking system can lead to a maximum expansion in bank deposits of $250, using the money multiplier formula, the required reserve ratio must be:
A. 40 percent. B. 20 percent. C. 25 percent. D. 50 percent.