A perfectly elastic demand curve is
A) vertical.
B) horizontal.
C) a rectangular hyperbola.
D) a downward sloping straight line.
Answer: B
You might also like to view...
Refer to the figure above. If Lithasia does not engage in international trade, what is the domestic production of pens?
A) 0 units B) 6 units C) 12 units D) 16 units
Suppose the market for bottled water is served by two oligopolists. If they reach an agreement to restrict production and charge a price above marginal cost, then:
A. neither firm will have an incentive to cheat on the agreement since it benefits them both. B. they will earn a larger profit than a monopolist would have earned. C. their agreement is likely to eventually collapse. D. they will charge a higher price than a monopolist would have charged.
Use the figure below to answer the following question.
The total benefit of the third unit of X is ________.
A. 4 B. 5 C. 15 D. 11
Establishing a list of favored customers is an alternative rationing mechanism to price rationing.
Answer the following statement true (T) or false (F)