The range to the left of the midpoint on a linear demand curve is
A. infinite.
B. elastic.
C. inelastic.
D. one.
Answer: B
You might also like to view...
If the government's provision of a subsidy is too large to counteract the entire effect of a positive externality, the:
A. quantity consumed will become even lower. B. quantity consumed will become too high. C. total surplus will be maximized. D. None of these statements is true.
Other things equal, which reduces competition in an industry?
A. Patent laws. B. Freedom of entry for new firms. C. An increase in the number of buyers. D. An increase in the number of producers.
Almost all economists support protectionist policies because protection
A) saves jobs. B) prevents rich countries from exploiting poorer countries. C) is a good way for governments in developed nations to raise revenue. D) Economists would not support any of the above reasons.
Advertising by monopolistically competitive firms can do all of the following EXCEPT
A) lower the consumer's purchase price. B) help differentiate a firm's product. C) act as a signal to consumers that the company is serious about staying in business. D) result in increased profits for the advertising firm.