Refer to the information provided in Figure 5.1 below to answer the question(s) that follow.
Figure 5.1Refer to Figure 5.1. The demand for tickets is
A. perfectly income inelastic.
B. unit price elastic.
C. perfectly price elastic.
D. perfectly price inelastic.
Answer: D
You might also like to view...
Which of the following does a monopoly control, that a perfectly competitive firm does not control?
a. how much to produce b. technology c. what price to charge d. what inputs to use e. plant size
The money expansion process continues until there are no more: a. required reserves in the system
b. demand deposits in the system. c. excess reserves in the system that banks are willing to lend. d. liabilities in the system. e. assets in the system.
The existence of a negative externality will result in:
A. a less than optimal level of production. B. elimination of deadweight loss. C. a greater than optimal level of production. D. prices that are artificially high.
Suppose that the value of the long-run absolute elasticity of demand for a good is one. Then, we know the short-run absolute price elasticity of demand will be
A. greater than one. B. less than one. C. infinity. D. elastic.