If the price of a good increases by 10% and the quantity demanded remains unchanged, then at that price, the good is
A. perfectly inelastic.
B. elastic.
C. perfectly elastic.
D. inelastic.
Answer: A
You might also like to view...
After the Fed raises the federal funds rate, the effects on the economy can take up to two years before they occur. Is this statement accurate? Lay out the time path of how an increase in the federal funds rate affects the economy
What will be an ideal response?
What is the exchange rate between the dollar and the British pound if a pair of American jeans costs 60 dollars in New York and 30 Pounds in London?
A) 1.5 dollars per British pound B) 0.5 dollars per British pound C) 2.5 dollars per British pound D) 3.5 dollars per British pound E) 2 dollars per British pound
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
A competitive market is characterized by the Question 25 options:
A. presence of at least one broker or auctioneer, so that price fixing is possible. B. existence of many buyers and sellers, so that no one can influence the price. C. existence of a physical location where buyers and sellers meet. D. presence of many different goods, so that there is never a shortage of goods to buy.