Demand is unit elastic when
A) the slope of the demand curve is -1.
B) a shift of the supply curve leads to no change in price.
C) a shift of the supply curve leads to an equal shift of the demand curve.
D) a change in the price of the product leads to no change in the total revenue.
D
You might also like to view...
The Big Mac index compares:
A. the cost of a Big Mac all over the world. B. the cost of a typical basket for consumers all over the world. C. typical food costs, as food is the largest component of all consumption baskets. D. typical food and energy costs across different locations.
Market power:
A.) Is the same for all market structures. B.) Means that a firm is a price taker, not a price setter. C.) Is the ability to alter the market price of a good or service. D.) Only exists for a monopoly.
The multiplier effect suggests that:
A. a ripple effect occurs from one person's initial spending. B. government spending $1 will create more than a $1 increase in GDP. C. a tax cut will increase GDP by more than the amount of the initial tax cut. D. All of these are true.
Contractionary monetary policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________
A) higher; higher B) higher; lower C) lower; higher D) lower; lower