On a linear demand curve, demand is ________ at large quantities than it is at the middle of the demand curve.
A. more elastic
B. less elastic
C. equally elastic
D. There is insufficient information in the question.
Answer: B
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Which of the following statements is correct?
A) The Fed has difficulty covering its normal expenses, but is reluctant to ask Congress for money. B) The Fed is dependent on the annual appropriations it receives from Congress. C) The Fed's profits are substantial, even when compared to the largest U.S. corporations. D) At one time the Fed made substantial profits, but falling interest rates have greatly reduced them.
The production possibilities frontier can be used to illustrate all of the following concepts, except one. Which is the exception?
a. productive inefficiency b. opportunity cost c. the law of demand d. scarcity e. the law of increasing opportunity costs
Economist David Ricardo argued that rent
a. is unethical b. would be higher if the country opened its doors to international trade c. determines the value of the goods produced with the asset d. depends on price and not, as commonly thought, price depends on rent e. can only be earned on land
If two goods are complements, their cross-price elasticity will be
a. positive. b. negative. c. zero. d. equal to the difference between the income elasticities of demand for the two goods.