If the price of a good falls by 10% and the total amount consumers spend on the good remains the same, then the good is
A. Unit elastic
B. Perfectly inelastic
C. Inelastic
D. Elastic
Answer: A
You might also like to view...
Judging from this graph, what would the individual firm charge if it increased its output to 400 bushels of wheat?
a. $3
b. $4
c. $5
d. $6
Other things being equal, the effects of an increase in the price of computers would best be represented by which of the following?
A. A movement up along the demand curve for computers. B. A movement down along the demand curve for computers. C. A leftward shift in the demand curve for computers. D. A rightward shift in the demand curve for computers.
________ are inducements to act in certain ways
Fill in the blank(s) with correct word
Under current tax law individuals do not pay taxes on health insurance benefits they receive from their employers. As a result,
A) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs. B) the quality of health care provided is less than it would be if benefits were taxed. C) politicians are encouraged to raise income and payroll taxes. D) the federal government spends more than it receives in tax revenue.