Along a linear (straight-line) downward-sloping demand curve, demand is unit elastic at
A) the highest price.
B) the lowest price.
C) the midpoint.
D) all points on the linear demand curve.
E) None of the above because linear demand curves are never unit elastic.
C
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Refer to Table 13-3. What is the best course of action for the firm in the short run?
A) It should not cut its price but it should increase its sales by advertising. B) It should stay in business because it covers some of its fixed cost. C) It should shut down. D) It should increase its sales by lowering its price.
Would it make sense to buy a house when mortgage rates are 14% and expected inflation is 15%? Explain your answer
What will be an ideal response?
On May 12, 2011, it cost U.S. $1.64 to buy 1 British pound. How many British pounds would U.S. $1 buy?
A. 0.56 B. 0.61 C. 1.64 D. 2.64
Tobin's q is equal to
A. the expected after-tax real interest rate. B. the ratio of capital's market value to its replacement cost. C. the stock market value of a firm. D. the ratio of capital's replacement cost to its market value.