In the case of perfectly elastic demand, the demand curve is:
A. upward sloping.
B. downward sloping.
C. vertical.
D. horizontal.
Answer: D
You might also like to view...
Refer to the figure above. This country's imports equal
A) CE units of X. B) GH units of Y. C) CD units of X. D) DE units of Y.
Profits of a monopoly are driven to zero
a. In the long-run as all assets are mobile in the long-run b. Immediately in the short-run as assets move from low-valued uses to high-valued uses instantly c. In the long run because the demand curve becomes more inelastic d. In the short run because the demand curve becomes more elastic
A wage-price spiral is the result of
A. lower wages and higher prices. B. higher wages and lower prices. C. higher wages and higher prices. D. lower wages and lower prices.
If a $100 billion increase in government spending results in a $500 billion increase in real GDP, then the value of the multiplier:
A. equals 0.2. B. equals 5. C. equals $400 billion. D. cannot be determined.